April 18, 2000
Cumulus Execs Bought Stock Before Plunge
source: Radio Business Report
Investors stung by the stock price plunge which followed Cumulus' restatement of financial results last month may find some solace in learning that both Executive Chairman Richard Weening and Executive Vice Chairman Lew Dickey Jr. made large stock purchases about a month and a half before the plunge. According to the company's 10-K, Cumulus made loans of just under $5M each to the two executives on 2/2 to exercise options and purchase 128K shares each of Class C stock at $39 per share, which was then the market price. Class C shares have the same value as the publicly traded Class A shares, but ten times the voting power. The value of the stock each purchased has since dropped to about $1.44M, but their $5M loans must be repaid, with interest, on 12/31/03.
posted on April 18, 2000 12:44 PM