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If you let the options holders cash out some of their shares during the financing round, that offsets the tax issue. Then they could afford to exercise, pay th
by fsk 11y ago
If you let the options holders cash out some of their shares during the financing round, that offsets the tax issue. Then they could afford to exercise, pay the tax bill, and take some money off the table.
Also, how do you come up with the price for the common shares when they aren't liquid and aren't changing hands? It seems weird to give a price of $10/share for a common share when you aren't able to sell at that price.
- joshu 11y ago409a valuation. There is a process. But generally the common price is much lower than the preferred.