When a major investor in a public company registers his or her share-holdings with the SEC, it can mean several things, including the possibility he will sell them. Or not. Which is now what Geoffrey S.M. Hedrick, CEO of Exton-based Innovative Solutions & Support Inc., says he is doing with his: Holding them. Last week, Innovative filed notice with the SEC that shareholders including Hedrick held 3.5 million shares and might sell them. We mentioned the filing in a posting. But we did not listen to Hedrick's conference call with equity analysts, who pressed him on the point. And he said never fear, he had no plans to sell. Click below for the transcript of the call, as provided by Innovative.
Tamara Monuchin, Greenwood Investments: I just wanted to see if anything has changed for – I just noticed that there was a S-3 registration form filed a couple of days ago so can you comment on that?
Hedrick: I can. The S-3 registration was literally an amendment to the S-3 registration that was initially filed about two months ago, two and a half months ago. It needed to be amended because of a three day or four day timing between our last release, our Q release, is that correct? So that’s why we had to re-file it. If there’s no difference in the original filing, there’s nothing changed. It had to be amended to bring it up to date.
James Reilly (Innovative's investor relations official): It was a technical amendment to conform with SEC requirements. Nothing else has changed.
Hedrick: Not the number of shares or the people. And no I’m not registering another 3.5 million shares. I wish I had them to register.
Monuchin: Okay, and I think that last quarter you mentioned that you did not register for the purpose of selling.
Hedrick: No, I mean without going into too much detail, just basically I (set) my founder’s shares since we went public since 2000. I already had well over half a million registered so I didn’t really need to register them. We made a decision as I mentioned before at the Board of Directors to register all the outstanding shares that had not yet been registered. And the reason you did that is that we had about 10 or 15 stockholders that had in some cases modest amounts of stock. And every time if they wanted to sell them it required a review by our attorney and a letter from our attorney on every single transaction. That was expensive for the company. It was difficult and time consuming for the person selling and so we decided to register all of those at the same time I registered my shares. I kept my stock because, I don’t know, I had a lot of stockholders and I decided that I thought this was a great investment. I still do. And by the way I’ve done very well with it. I’m proud to be a stockholder.
Monuchin: Great, thank you.
Hedrick: No, I’m not ready to sell. I think it’s going to go up. How about that?
