HALE MARTIN M JR 4
4 · FALCONSTOR SOFTWARE INC · Filed Feb 28, 2018
Insider Transaction Report
Form 4
HALE MARTIN M JR
Director10% Owner
Transactions
- Award
Warrants
2018-02-23+41,577,382→ 41,577,382 total(indirect: See Footnotes)Exercise: $0.00From: 2018-02-23Exp: 2028-02-23→ Common Stock (41,577,382 underlying) - Award
Warrants
2018-02-23+366,990,000→ 366,990,000 total(indirect: See Footnotes)Exercise: $0.00Exp: 2028-02-23→ Common Stock (366,990,000 underlying)
Footnotes (3)
- [F1]The warrants reported herein were issued by Falconstor Software, Inc. (the "Issuer") to HCP-FVA, LLC, a Delaware limited liability company ("HCP-FVA"), in consideration for HCP-FVA backstopping that certain private placement of units (the "Financing") contemplated by that certain commitment letter, dated as of November 17, 2017, by and between Hale Capital Partners, LP ("HCP") and the Issuer (the "Commitment").
- [F2]The warrants reported herein were issued by the Issuer to HCP-FVA in connection with its purchase of $3,000,000 of units in the Financing upon the closing of the Commitment. The warrants are exercisable following receipt of stockholder approval to amend the Issuer's Certificate of Incorporation to increase the number of authorized shares of its common stock in order to permit the exercise of the warrants.
- [F3]Martin Hale, Jr. ("MH") is the Chief Executive Officer of HCP. MH is also (i) the sole owner and managing member of Hale Fund Partners, LLC, a Delaware limited liability company ("HFP"), the general partner of HCP and (ii) the sole owner and Chief Executive Officer of Hale Fund Management, LLC, a Delaware limited liability company ("HFM"). HFM is (i) the general partner of Hale Capital Management, LP ("HCM"), the manager of HCP and (ii) the manager of HCP-FVA. Each of MH, HFP, HFM and HCM disclaims beneficial ownership of the securities reported herein, except to the extent of his or its pecuniary interest.