Business Context and Reporting Period
Company: Optical Cable Corp.
Filing Type: Form 8-K (Current Report)
Report Date: January 10, 2003
Event: Execution of a Stock Purchase Agreement to repurchase shares held by A.G. Edwards & Sons, Inc.
Key Financial Metrics
- Shares Repurchased: 1,475,867 shares (approximately 21% of outstanding common stock).
- Price Per Share: $2.00.
- Total Purchase Price: $2,951,734.
- Post-Transaction Outstanding Shares: 5,452,785.
- Funding Source: Combination of borrowings under the company's credit facility and cash on hand.
- Share Status: Repurchased shares are to be retired.
Material Changes
The company reduced its outstanding share count by approximately 21% through a privately negotiated, unregistered transaction. The shares were previously held by A.G. Edwards & Sons, Inc. as collateral for personal margin loans extended to Robert Kopstein, the former Chairman, President, and CEO.
Outlook, Risks, and Management Commentary
The filing does not provide forward-looking guidance, management commentary on future operations, or specific risk factors beyond the transaction details. The transaction was executed to resolve the security interest held by the broker-dealer regarding the former CEO's loans.
Investor Verification Checklist
- Verify the impact of the increased debt load from the credit facility borrowings used to fund the repurchase.
- Confirm the retirement status of the 1,475,867 shares in subsequent filings.
- Review the terms of the credit facility to assess remaining borrowing capacity.
- Check for any related party transaction disclosures regarding the former CEO's margin loans.