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Thursday, January 4, 2018

Another Energous Insider Sale - This time for up to $43 million

So it looks like Malcom Fairbairn of Ascend Capital just sold a chunk of Energous stock. He had put in $20 million in August 2016 for which he appears to have obtained 15.5% of the company.

SEC's EDGAR site data (summarized here) shows he sold 809,061 shares on the 27th December, and 1,162,300 on 4th January, down to 4.5% of stock - leaving just 29% of what the company had held only a couple of weeks ago.

Depending upon when he sold on the 4th, he may have received around $22 per share, while the stock sold on the 27th could have been anywhere from $17 to $22 per share. That gives $25,570,600 from the sale on the 4th, and between around $13.5 and $17.8 million on the 27th for somewhere between $39 and $43.4 million, leaving around $23 million of stock (at the 4th January's prices).

A number of directors, including Martin Cooper, received a stock grant at a cost of $0 - 26,929 shares and at 4th January prices that is as much as $600,000 each. Cooper (@MartyMobile) was mentioned in the FCC Chairman's questionable tweet about Energous Part 18 approval.

The most important thing to notice though is that Ascend Capital, one of the largest investor in Energous for the last 18 months, just sold >70% of their holding, just before, what we the company would like us to believe is a huge ramp up in the company's fortunes. For a company well placed to "take over the world", the insiders sure are keen to sell.

Update 13th Jan 2018: A poster on SeekingAlpha reminded me that once below 5% holdings there's no requirement for a stockholder to report a sale to the SEC. That 4.5% that remained of Ascend's original 15.5% could be gone. If it has been sold, at a price of $22, that's a further $22.8 million dollars.

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