Email received from Zalicus (ZLCS) by Mr. Renz:
As part of his hiring as our CEO in January 2010, Dr. Corrigan received 750,000 restricted stock units (RSUs) that would vest and ultimately become Zalicus common stock: (1) if Exalgo was approved and (2) he remained actively employed at Zalicus at various points over the next four years. Exalgo was approved by the FDA on March 1, 2010. Therefore each January 15, from 2011-2014, Dr. Corrigan has or may have 187,500 shares of common stock vest under these RSUs. The vesting of restricted stock causes immediate taxable income to Dr Corrigan, which has to be paid in cash. To cover this tax liability, each year Dr. Corrigan then sells the minimum number of shares necessary to cover the tax bill that comes with this share vesting and then retains the remaining shares. This year, consistent with the past two years, Dr. Corrigan only sold enough shares to cover his tax liability and remains committed to Zalicus, both for the short and long term.
I am not at liberty to comment on the article. As always Jorge, thank you for your interest in Zalicus.
JUSTIN A. RENZ
Disclosure: I am long ZLCS.