Thursday, August 5, 2004
Google Makes Stock and Options Goof
Google has offered to repurchase up to 23M shares of stock and 5M options from its employees and consultants, due to not being qualified under state securities laws. The company said in a filing that the options grant and stock issuances may have violated the Securities Act of 1933 by not being registered. The company has issued a rescission offer, where it would repurchase the shares granted at a price equal to 20% of the per share price plus interest, whether or not the shares were vested. The company said that the exercise price of the options ranges from $0.30 to $80.00 per share. However, it also revealed that one of its officers and an investor were not going to accept the offer to rescind the shres. The total amount of stock and options covered under the offer is $25.9M, though it seems unlikely that many employees would accept given the current estimated pricing for Google shares is $108 to $135 per share.