No, they get to sell the shares at the market and repay what they can of the loan with what they get from the sale. I'm not really liking this, it delays about $2.25m in cash coming into the bank by a year.
The nature of these performance shares was ill-conceived at best. At the AGM last year, Richard Grelman struggled to explain why they chose this method of rewarding directors. Simple options at a certain strike price would have been far simpler than what they did. If the share price is not 4.5 cents at the time, they would crash the SP selling 50million shares at market. Terribly thought-through concept. When Grelman's renewal as a director is up, I won't be voting for him.
FBR Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
