- 16 -
Moshe Melnik, and Zalman Melnik received consideration totaling
$6,166,690, $1,657,396, and $1,200,183, respectively.
On or about April 15, 1997, Clend exercised Category 2
conversion rights to acquire an additional 182,482 shares of MMI
for $1 million. The purchase price was offset against MMI’s
obligation to Clend under the promissory note. On or about May
21, 1997, Clend exercised warrants to acquire 180,000 shares of
MMI for $720,000. The purchase price was again offset against
MMI’s obligation to Clend under the promissory note. On or about
June 3, 1997, MMI wired to Clend $3,388,907 representing the
principal balance and interest due under the promissory note.
In June 1997,22 MMI delivered the MMI warrants and stock to
Clend.
Clend’s Investments
On or about May 21, 1997,23 the Melniks met Mr. Maycock for
the first time at a meeting arranged and attended by Mr. Pennoni.
In a letter dated May 28, 1997, Mr. Maycock issued instructions
22According to Clend’s “Company Account Statement” for 1999,
the Bank of Bermuda received 735,260 shares of MMI stock
registered in nominee name (Gerlack & Co.) on or before Jan. 5,
1999. On or before Jan. 15, 1999, the MMI shares were delivered
to Warburg Dillon Read LLC, with offices in New York, N.Y. From
Aug. 18, 1999, through Oct. 1, 1999, Bermuda Trust sold or
arranged the sale of 727,360 shares of Clend’s MMI stock for
approximately $930,000.
23In a letter dated May 28, 1997, which was a Wednesday, Mr.
Maycock wrote to Mr. Pennoni acknowledging that he was introduced
to the Melniks in Mr. Pennoni’s offices on the preceding
Wednesday.
Page: Previous 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 NextLast modified: May 25, 2011