Courtesy of Benzinga.
Akorn (NASDAQ: AKRX), today announced that its Chairman, Dr. John N. Kapoor, on his own behalf and on behalf of several trusts of which he is a trustee, have each established pre-arranged trading plans to sell a portion of their shares in the Company over a designated period for estate planning purposes. The plans were adopted in accordance with Rule 10b5-1 of the Securities and Exchange Act of 1934.
Dr. Kapoor’s plans call for the sale of up to 4,000,000 shares if certain conditions are met. The sales may begin in September and will be completed by the end of December 2012. If all shares in the plan are sold, Dr. Kapoor’s total holdings of Company shares and unexercised warrants will be reduced by approximately 12 percent. Dr. Kapoor, through his various holdings, will continue to be Akorn, Inc.’s largest shareholder following the execution of the trading plans.
Rule 10b5-1 allows corporate officers and directors to adopt written, pre-arranged stock trading plans when they do not have material non-public information. Such programs provide for regular selling of a predetermined, fixed number of company shares in order to gradually diversify the individual’s investment portfolio, minimize the market effect of share sales by spreading them out over an extended period of time and avoid concerns about initiating transactions while in possession of material non-public information.
