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Disclaimer, I am not an expert, but I did stay at a Holiday Inn Express last night. First I would suggest you bring up your concerns clearly and make sure you
by arielweisberg 13y ago
Disclaimer, I am not an expert, but I did stay at a Holiday Inn Express last night.
First I would suggest you bring up your concerns clearly and make sure you understand why they won't tell you. Give them a chance to explain. If the company is 30 people you should be able to drop by the CEOs office and ask. Like I said they may not be saying anything because the financing is not final.
Alternatively if they are not cooperative.
Go in tomorrow and ask to exercise your vested options. At this point they have no choice but to tell you the FMV of those options. Don't exercise them, or do that is a separate topic and you have to watch out for tax liability.
Do it again after the financing finishes. The FMV of your shares will change. If it is significantly lower the options may not be worth your time.
They can't avoid telling you the FMV of the shares you have because you need to know to calculate your tax liability for the spread between the strike price and the current FMV.
Think of it like any other investment. If it isn't gaining in value it's not worth your time. If the FMV of your shares is say 4/5s of what you had before financing you did well. If it is 1/9 you got screwed or your company is doing very poorly (although why would anyone invest in it then...) In the middle it is more complicated.
If your company is healthy and not taking on a large amount of money for growth the FMV of your shares might actually increase despite the dilution.
- emp25 13y agoThanks for the info Ariel. I'll have another talk with the CEO, maybe in private this time.