Allstocks.com's Bulletin Board: CEO sale in TYTT surprising

This is topic CEO sale in TYTT surprising in forum OTCBB Reporting Stocks at Allstocks.com's Bulletin Board.

To visit this topic, use this URL:
http://www.allstocks.com/stockmessageboard/ubb/ultimatebb.php/ubb/get_topic/f/17/t/000028.html

Posted by secureLE on :

On July 1, the founder and CEO (James Shepard) of Typhoon Touch Technologies sold his 58% ownership in the Company back to the Company in exchange for assets that appear to be worth less than $64,805, if anything at all. Given the subsequent 100:1 forward split, this transaction values the current common shares at 0.0018 cents per post-split share, which is substantially less than today's last trade price of $8.

You can read about this transaction in the SEC Form 14 Proxy statement at http://www.sec.gov/Archives/edgar/data/1352588/000122150808000022/finalschedule1 4a.htm
See especially “Determination of Sale Price” at the bottom of page 13.

One would think that the CEO would know better than anyone else the value of the patents. Why did he sell for so little? I imagine today's buyers will be very concerned.