You are not correct. Per the prospectus, Gary sold $12m of stock at the IPO. If you've ever seen him present, you will know that he put his original full net worth and mortgaged everything to start the company. It is completely reasonable that he derisk that a bit. Yes he has done alright with taking $12m off the table and I would prefer a CEO that doesn't need to focus on paying a mortgage or worry about personal finances. Gary and his family is the largest shareholder and hold over 51m shares. At the time of the IPO this was worth $72m (so he sold about 15% of his holding at the time of the IPO). All the investors at the time of the IPO were completely fine with that.
With the share price decline Gary has lost more value than anyone else in this company. As the largest shareholder, he suffers the biggest dilution. I reckon it is a bitter pill to swallow, even if ultimately of the company's own making.
Cheers Marv
LBY Price at posting:
68.0¢ Sentiment: Buy Disclosure: Held
