Explains that CEO used some of his shares as collateral for a loan
Neteller parent Optimal Payments plc issued a statement Friday in an attempt to address speculation which has apparently caused a weakness in its share price.
The speculation appears to be related to the use in April by CEO Joel Leonoff of 1.5 million of his share options as collateral for a loan of around GBP 4 million.
Leonoff has a total of 4,133,843 shares in the company (including the aforementioned pledged 1.5 million).
In its statement, Optimal notes:
"The Company can confirm that Mr Leonoff entered into a master loan and pledge agreement with Equity First Holdings, LLC ("EFH") on .
"As announced on , Mr Leonoff pledged 1,500,000 shares as collateral for a loan of approximately £4 million. Mr Leonoff pays interest of 3% on a quarterly basis to EFH on the Loan, together with a financing arrangement fee of 1.5% and is obligated to repay the Loan three years from the closing date of the agreement.
"Mr Leonoff will receive from EFH a credit of all dividends paid on the Pledged Shares during the term of the Loan once the Loan is repaid. For the purposes of securing the Loan, during the period of the Loan Mr Leonoff has transferred title and voting rights in the Pledged Shares. In the event of a default by Mr Leonoff EFH would be entitled to set off Pledged Shares to the value of outstanding monies owed.
"EFH will not exercise any voting rights attached to the Pledged Shares. For the period of the Loan EFH has committed not to engage in any short selling in, or lending of, the Company's shares."
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