HALE MARTIN M JR 4
4 · FALCONSTOR SOFTWARE INC · Filed Dec 20, 2018
Insider Transaction Report
Form 4
HALE MARTIN M JR
Director10% Owner
Transactions
- Exercise/Conversion
Common Stock
2018-12-18$0.00/sh+303,379,065$303,379→ 358,200,057 total(indirect: See Footnotes) - Exercise/Conversion
Warrants
2018-12-18−303,379,065→ 1,543,630 total(indirect: See Footnotes)Exercise: $0.00→ Common Stock (303,379,065 underlying)
Holdings
- 70,815
Common Stock
Footnotes (7)
- [F1]Represents shares of vested Restricted Stock previously granted to Martin Hale, Jr. ("MH") under the Falconstor Software, Inc. 2016 Outside Director Equity Compensation Plan in consideration for services performed as a member of the Board of Directors of Falconstor Software, Inc. (the "Issuer"). MH holds these shares for the benefit of Hale Capital Partners, LP ("HCP").
- [F2]HCP-FVA, LLC ("HCP-FVA"), a Delaware limited liability company, exercised that certain Financing Unit Warrant, dated February 23, 2018 (the "Financing Unit Warrant"), to purchase 303,379,065 shares of common stock (the "Common Stock") of the Issuer.
- [F3]The shares of Common Stock reported herein are held by HCP-FVA and HCP.
- [F4]The Financing Unit Warrant is presently exercisable and expires on February 23,2028, unless the expiration date of the Financing Unit Warrant is accelerated by the Issuer in accordance with the terms of the Financing Unit Warrant. The Issuer accelerated the expiration date of the Financing Unit Warrant to December 31, 2018.
- [F5]Represents the remaining backstop warrants held by HCP-FVA to purchase 1,543,630 shares of Common Stock as set forth in the previous filings of HCP-FVA and MH.
- [F6]The derivative securities reported herein are held by HCP-FVA.
- [F7]MH is the Chief Executive Officer of HCP, the sole member of HCP-FVA. 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.