To address the Zalicus ZLCS recent Form 4 filing for the sales of roughly 100,000 shares from Dr. Mark Corrigan. This email is from the CFO Justin Renz to myself explaining the filing.
A lot of bashers (Stocklaser) tried to use this filing last week to spin it negatively which is not the case at all. This is positive news strait from the horses mouth.
I wish this email would have accompanied the form 4 filing to prevent the PPS downturn which should never have happened in the first place.
I wanted to make sure that you were aware since others have asked this evening.
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."
JUSTIN A. RENZ|
Chief Financial Officer and Treasurer
I am bullish here at this PPS level and looking for Prednisporin P3 start, Z944 update and as well as Z160 progress report.
Disclosure: I am long ZLCS.