In conjunction with the December 2007 $8.2 million PIPE financing, on August 27, 2010, several early investors, including select members of the board of directors, pursuant to lock-up agreements they delivered to facilitate the PIPE financing, entered a lock-up period whereby they cannot sell any NewCardio stock for the one year through August 27, 2011. This group represents more than one-third of the approximately 30 million shares of common stock outstanding. In anticipation of this one year lock-up, and in conjunction with his transition from CEO and his voluntary salary reduction taken as part of the current expense reduction plan that was put in place by management to strengthen its financial position, Branislav Vajdic, Ph.D., Founder, Vice Chairman and NewCardio Fellow and one of the investors subject to the lock-up, sold 295,000 shares. The sale represents his only sale since founding the Company in 2004.
Describing the trade, Dr. Vajdic stated, "I am pleased and proud to continue to be the single largest shareholder of NewCardio, and thus believe I am fully aligned with all our shareholders. I remain committed to the success of the Company and believe that we are getting close to achieving the promise we saw when we founded the Company around our powerful 3-D technology platform to improve the value of the most widely used cardiology diagnostic tool in the world, the ECG. As part of our plan moving forward, I retain approximately 97% of my holdings and NewCardio remains my single largest personal asset. This was a limited opportunity to provide some liquidity and I remain fully committed to the success of the Company both as the Vice Chairman and a key technical expert."
In aggregate, officers and directors now beneficially own approximately 36% of the NewCardio's outstanding common stock.
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