The short-term reduction in warrant exercise prices
is intended to provide a quick and inexpensive means to obtain additional capital in a difficult climate for raising capital by entities such as the Company.
Pursuant to the terms of the Merger and the terms of each of the IOI warrants and the New PowerBrief warrants, the exercise prices
of the warrants were to be calculated in part based on the post-Merger market trading prices for New PowerBrief's Common Stock.
About 40% of Quantum's outstanding stock options have exercise prices
significantly above the company's current market price.
commented, "This reduction in the exercise price
of the Company's warrants is expected to produce near-term benefits to both warrant holders and Farmstead.
FTCN) of Tampa, announced Friday an extension of the exercise date and a reduction of the exercise price
of the company's A Warrants and B Warrants.
In the alternative, the company offers a reduced warrant exercise price
of 25 cents per A Warrant, the proceeds of such exercise being placed in an escrow account in anticipation of the merger.
Finally, Part V discusses the potential additional benefit of providing in the option plan for the use of previously acquired shares of employer stock to pay the exercise price
under an ISO, and explores other means of facilitating the exercise of ISOs by employees.
Plus, you should disclose the range of exercise prices
(in addition to the weighted average exercise price
) and the weighted average remaining contractual life for options outstanding as of your last balance sheet.
Under this guideline, most companies have offered employee stock options with fixed terms--both the exercise price
and the number of shares are fixed at the grant date.
On July 10, 1992, the Company had announced that the exercise price
of the Initial Warrants was being reduced from $7.
On several occasions, in order to select favorable exercise prices
for certain newly hired executives or other senior personnel, the Company created employment records to establish start dates that preceded the date they actually began working for the Company.
The Special Committee further concluded that, as a result of, among other things, such inadequate controls and practices, there were certain instances where the exercise prices
of certain stock option grants, principally related to new hire grants, appear to have been selected with the benefit of hindsight -- i.