SPRINGFIELD, Ohio, May 10, 2017 /PRNewswire/ -- The CEO of EF Hutton (OTC: HUTN) has purchased 2,000,000 shares of EF Hutton, exercising a right under his employment agreement. The shares were purchased for $0.50 per share.
Christopher Daniels, the company's CEO said "I believe in the company's future and cannot think of a better way to show that than to risk my own personal capital to buy a significant number of shares."
Unlike many CEOs who win even if shareholder's don't, compensation under Mr. Daniels employment contract is geared to performance and to alignment with shareholder interests. His base salary is just one dollar per year and any bonuses and stock options are contingent upon performance.
Mr. Daniels purchased the shares directly from the company in a private transaction. The shares were issued under an exemption from registration under Reg D of the Securities Act of 1933 as amended. The shares carry a legend and, unless registered, they cannot be sold for at least one-year, except pursuant to an applicable exemption. In return for the unregistered shares, the company received a balloon note that matures in five years at an effective fixed rate of 4.31%.
Cautionary Note Regarding Forward-Looking Statements. Certain statements contained in this press release that are not historical facts may constitute "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and are intended to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995.
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SOURCE EF Hutton