LAWSUITS NEWS & LEGAL INFORMATION
First Montauk Financial Corp.
Newark, NJ: (Jun-18-07) Edward Okun terminated a merger agreement that he and his affiliated companies had entered into with First Montauk Financial Corp. Four separate lawsuits arising out of the termination of the merger agreement were filed in December 2006.
In a settlement reached between the parties, both agreed to exchange general releases and the Okun affiliates surrendered 197,824 shares of Series B Preferred Stock, 283,087 shares of Series A Preferred Stock and 5,272,305 shares of Common Stock. The settlement reduces the outstanding common stock of First Montauk by 37%, on an a converted basis, and immediately reduces Okun's interest in First Montauk to below 25% of the remaining outstanding shares of Common Stock.
First Montauk received an exclusive 60 day option to purchase Okun's remaining 3,300,308 shares of common stock for $2.5 million. During the 60 day option period, First Montauk had the right to vote the shares in any matter that comes before the shareholders including the election of directors. As part of the settlement, all of the lawsuits will be dismissed with prejudice. In addition, the $2 million that was deposited in escrow by Okun at the time of the execution of the Merger Agreement will be returned to him. [DBUSINESS NEWS: MERGER TERMINATION]
Published on Jun-22-07
In a settlement reached between the parties, both agreed to exchange general releases and the Okun affiliates surrendered 197,824 shares of Series B Preferred Stock, 283,087 shares of Series A Preferred Stock and 5,272,305 shares of Common Stock. The settlement reduces the outstanding common stock of First Montauk by 37%, on an a converted basis, and immediately reduces Okun's interest in First Montauk to below 25% of the remaining outstanding shares of Common Stock.
First Montauk received an exclusive 60 day option to purchase Okun's remaining 3,300,308 shares of common stock for $2.5 million. During the 60 day option period, First Montauk had the right to vote the shares in any matter that comes before the shareholders including the election of directors. As part of the settlement, all of the lawsuits will be dismissed with prejudice. In addition, the $2 million that was deposited in escrow by Okun at the time of the execution of the Merger Agreement will be returned to him. [DBUSINESS NEWS: MERGER TERMINATION]
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