Earlier today, MYM Nutraceuticals Inc. (CSE:MYM) (OTC:MYMMF) announced the adoption of an automatic securities disposition plan, a.k.a. ASDP, to allow insiders of the company to sell shares into the open market. This announcement comes on the heels of recent news regarding application acceptance for MYM's joint venture in Australia.
According to the release:
"Canadian legislation permits an insider to adopt a written ASDP to sell shares through an independent broker in accordance with a pre-arranged set of instructions, regardless of any subsequent material non-public information the insider may receive, as long as the ASDP satisfies certain requirements. In accordance with Canadian legislation, sales of shares under the ASDP will be effected by independent securities brokers in accordance with the trading parameters and other instructions set out in the ASDP.
MYM insiders will not exercise any discretion or influence over how dispositions will occur under the ASDP, and the broker administering the ASDP is not permitted to consult with MYM insiders regarding any such dispositions. In addition, insiders are subject to restrictions on their ability to modify, suspend or terminate their participation in the ASDP.
The objective of the ASDP is to facilitate the sale of common shares of MYM currently held by insiders on the open market over a period of up to two years at prevailing market prices. The ASDP will allow those MYM insiders to sell their shares in order to further diversify their respective portfolios."
The ASDP Trading Plan
Collectively, the following five insiders will be selling (through this ASDP facility) a total of 2,796,000 shares of MYM into the open market over the coming 24 months at a rate of 116,500 per month. At a last trade price of $2.79 CAD per share, that block of shares is currently valued at $7,800,840 CAD.
Rob Gietl, the CEO will be selling 25,000 shares per month for 24 months. This will amount to a disposition of 600,000 shares.
Erick Factor, the Founder and Exectuive Chairman of the Board will be selling 40,000 shares per month for 24 months. This will amount to a disposition of 960,000 shares.
Ian Ramage, a Director, will be selling 10,000 shares per month for 24 months. This will amount to a disposition of 240,000 shares.
Mark Forster, the Chief Financial Officer, will be selling 40,000 shares per month for 24 months. This will amount to a disposition of 960,000 shares.
Robin Linden, a Director, will be selling 1,500 shares per months for 24 months. This will amount to a disposition of 36,000 shares.
Shares of MYM are down big today on the news, but we'll be monitoring the situation as it progresses. To stay up to date with important developments in the cannabis investment space, be sure to subscribe to one or more of our free email newsletters. Also, connect with The Daily Marijuana Observer on Facebook, Twitter, StockTwits and Instagram!