NetSpend 2010 Annual Report Download - page 39

Table of Contents
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER
PURCHASES OF EQUITY SECURITIES
Market Information
Our common stock has been listed on the NASDAQ under the symbol "NTSP" since October 19, 2010. Prior to that date, there was no
public trading market for our common stock. Our initial public offering ("IPO") was priced at $11.00 per share on October 19, 2010. For the
period October 19, 2010 through December 31, 2010, the high and low sales prices per share of our common stock as reported on the
NASDAQ were $16.21 and $11.02, respectively.
On February 25, 2011, the last reported sales price of our common stock on the NASDAQ was $13.51 per share and, as of December 31,
2010, there were 270 holders of record of our common stock. Because many of our shares of common stock are held by brokers and other
institutions on behalf of stockholders, we are unable to estimate the total number of stockholders represented by these stockholders of record.
Dividend Policy
We have not paid cash dividends on our common stock during the 2009 and 2010 fiscal years, and do not expect to pay cash dividends on
our common stock for the foreseeable future. We anticipate that all of our earnings will be used for the operation and growth of our business.
Any future determination to pay cash dividends on our common stock would be subject to the discretion of our board of directors and would
depend upon various factors, including our results of operations, financial condition and liquidity requirements, restrictions that may be
imposed by applicable law and our contracts, and other factors deemed relevant by our board of directors. In addition, the terms of our credit
facility currently restricts our ability to pay dividends.
Unregistered Sales of Equity Securities
For the twelve months ended December 31, 2010, we issued and sold 1,000,215 shares of common stock to certain of our employees and
consultants upon the exercise of options to purchase common stock granted pursuant to our Amended and Restated NetSpend Holdings, Inc.
2004 Equity Incentive Plan (the "2004 Plan") at exercise prices ranging from $0.25 per share to $3.53 per share. The issuance of such shares
was exempt from the registration requirements of the Securities Act of 1933 in reliance on Section 4(2) thereof, and the rules and regulations
promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the Securities Act, as transactions by an issuer not involving a public
offering or transactions pursuant to compensatory benefit plans and contracts relating to compensation as provided under such Rule 701.
For the twelve months ended December 31, 2010, we granted options to purchase an aggregate of 3,244,574 shares of common stock to
certain of our employees and consultants pursuant to the 2004 Plan at a weighted average exercise price of $5.22 per share. The issuance of
such options was exempt from the registration requirements of the Securities Act of 1933 in reliance on Section 4(2) thereof, and the rules and
regulations promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the Securities Act, as transactions by an issuer not
involving a public offering or transactions pursuant to compensatory benefit plans and contracts relating to compensation as provided under
such Rule 701.
For the twelve months ended December 31, 2010, we granted an aggregate of 674,043 shares of restricted common stock to certain of our
employees pursuant to the 2004 Plan. The issuance of such shares was exempt from the registration requirements of the Securities Act of 1933
in reliance on Section 4(2) thereof, and the rules and regulations promulgated thereunder, or Rule 701 promulgated under Section 3(b) of the
Securities Act, as transactions by an issuer not involving a public offering or
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