SAFLINK CORP 4
4 · SAFLINK CORP · Filed Aug 16, 2004
Insider Transaction Report
Form 4
SAFLINK CORPSFLK
NORTH SOUND CAPITAL LLC
10% Owner
Transactions
- Exercise of In-Money
Warrant to purchase Common Stock
2004-08-06−665,309→ 0 totalExercise: $2.50Exp: 2007-01-08→ Common Stock (665,309 underlying) - Exercise of In-Money
Warrant to purchase Common Stock
2004-08-06−1,666,668→ 0 totalExercise: $2.50Exp: 2007-06-28→ Common Stock (1,666,668 underlying) - OtherSwap
Equity Swap on Common Stock
2003-11-24+1→ 1 total(indirect: By the Funds)→ Common Stock (603,750 underlying) - Exercise of In-Money
Common Stock, $.01 par value per share
2004-08-06$2.50/sh+1,666,668$4,166,670→ 9,440,922 total - Exercise of In-Money
Common Stock, $.01 par value per share
2004-08-06$2.50/sh+665,309$1,663,273→ 7,774,254 total - OtherSwap
Equity Swap on Warrant and Common Stock Underlying Warrant
2003-11-24+1→ 1 total(indirect: By the Funds)→ Warrant and Common Stock Underlying Warrant (362,250 underlying)
Footnotes (8)
- [F1]Issued upon the exercise of a warrant issued on January 8, 2002.
- [F2]The ultimate managing member of North Sound Capital LLC is Thomas McAuley. The Reporting Person and the managing member may be deemed the beneficial owner of the shares held by North Sound Legacy Fund LLC, North Sound Legacy Institutional Fund LLC and North Sound Legacy International Ltd. (the "Funds"), who are the holders of such shares. The Reporting Person and the managing member have voting and investment control with respect to the shares of Common Stock held by the Funds. The Reporting Person has no pecuniary interest in any of the non-derivative or derivative securities reported on this Form 4.
- [F3]Issued upon the exercise of a warrant issued on June 28, 2002.
- [F4]On November 24, 2003, North Sound Legacy International Ltd., North Sound Legacy Institutional Fund LLC and North Sound Legacy Fund LLC entered into an equity basket swap agreement with a bank under which the bank purchased a total of 603,750 shares of Common Stock at $3.36 per share and purchased a warrant at $1.897 per share (the "Warrant") exercisable into 362,250 shares of Common Stock at an exercise price of $3.60 per share (collectively, the "Equity Swaps"). The exercise price of the Warra nt was reduced to $2.50 per share under a special warrant offer of the Issuer, and exercised into Common Stock on August 6, 2004.
- [F5]December 1, 2004 or such later date as may be mutually agreed upon by the parties.
- [F6]The Funds, but not the Reporting Person, have pecuniary interests in the Equity Swaps. Neither the Reporting Person or the Funds have beneficial ownership in the securities underlying the Equity Swaps.
- [F7]The Warrant was exercised in full by the bank on August 6, 2004 at an exercise price of $2.50 per share.
- [F8]Immediately.