Stamps.com 2015 Annual Report Download - page 28
Download and view the complete annual report
Please find page 28 of the 2015 Stamps.com annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.TABLE OF CONTENTS
January29,2016,wehad16,712,407sharesoutstanding,andthereforeownershipofapproximately836,000sharesormorewould
currentlyconstitutea“5%shareholder”.We strongly urge that any stockholder contemplating becoming a 5% or more
shareholder contact us before doing so.
Even if we revoke the existing waiver to make the NOL Protective Measures operate again to prevent new “5% shareholders”,
we cannot ensure that an “ownership change” will not occur.
Section382oftheInternalRevenueCodeisanextremelycomplexprovisionwithrespecttowhichtherearemanyuncertainties.
Accordingly,iftheexistingwaiverwererevokedsothatthemeasuresweretooperateagaintopreventnew“5%shareholders”,the
NOLProtectiveMeasuresmightnotpreventalltransfersthatmightresultinan“ownershipchange.”Alternatively,acourtcouldfind
thatsomeoralloftheNOLProtectiveMeasuresarenotenforceable,eitheringeneralorastoaparticularfactsituation.Evenifthe
NOLProtectiveMeasuresareenforcedbystatecourts,wehavenotrequestedarulingfromtheInternalRevenueService(“IRS”)
regardingtheeffectivenessoftheNOLProtectiveMeasures,andwecannotensurethattheIRSwillagreethattheNOLProtective
MeasuresareeffectiveforpurposesofSection382.Moreover,ourBoardofDirectorscouldstillpermitatransferortransfersthat
resultinorcontributetowardsan“ownershipchange”ifitweretodeterminethatsuchatransferisinourbestinterests.Asaresultof
theseandotherfactors,theNOLProtectiveMeasures,ifoperative,wouldservetoreduce,butnoteliminate,theriskthatwecould
undergoan“ownershipchange.”Accordingly,eveninsuchevent,wecouldnotassureyouthatuponaudit,theIRSwouldagreethatall
ofourNOLsareallowable.
Our charter documents could deter a takeover effort, which could inhibit your ability to receive an acquisition premium for
your shares.
Theprovisionsofourcertificateofincorporation,bylawsandDelawarelawcouldmakeitdifficultforathirdpartytoacquireus,
evenifitwouldbebeneficialtoourstockholders.Inaddition,wearesubjecttotheprovisionsofSection203oftheDelawareGeneral
CorporationLaw,whichcouldprohibitordelayamergerorothertakeoverofourcompany,anddiscourageattemptstoacquireus.
Inaddition,iftheexistingwaiverofourNOLProtectiveMeasureswererevokedsothatthemeasuresoperatedagaintoprevent
new“5%shareholders”,theNOLProtectiveMeasurescouldbedeemedtohavean“anti-takeover”effectbecause,amongotherthings,
theywouldrestricttheabilityofaperson,entityorgrouptoaccumulatemorethan5%ofourcommonstockandtheabilityofpersons,
entitiesorgroupsnowowningmorethan5%ofourcommonstocktoacquireadditionalsharesofourcommonstockwithoutthe
approvalofourBoardofDirectors.Asaresult,ourBoardofDirectorsmightbeabletopreventanyfuturetakeoverattempt.Therefore,
theNOLProtectiveMeasurescoulddiscourageorpreventaccumulationsofsubstantialblocksofsharesinwhichourstockholders
mightreceiveasubstantialpremiumabovemarketvalueandmighttendtoinsulatemanagementagainstthepossibilityofremoval.
The USPS may object to a change of control of our common stock.
TheUSPSmayraisenationalsecurityorsimilarconcernstopreventforeignpersonsfromacquiringsignificantownershipofour
commonstockorofourcompany.TheUSPSalsohasregulationsregardingthechangeofcontrolofapprovedPCPostageproviders.
Theseconcernsmayprohibitordelayamergerorothertakeoverofourcompany.OurcompetitorsmayalsoseektohavetheUSPS
blocktheacquisitionbyaforeignpersonofourcommonstockorourcompanyinordertopreventthecombinedcompanyfrom
becomingamoreeffectivecompetitorinthemarketforpostagesolutions.
Our stock price is volatile.
Thepriceatwhichourcommonstockhastradedhasfluctuatedsignificantly.Thepricemaycontinuetobevolatileduetoa
numberoffactors,includingthefollowing,someofwhicharebeyondourcontrol:
• variationsinouroperatingresults,
• variationsbetweenouractualoperatingresultsandtheexpectationsofsecuritiesanalysts,
• investorsandthefinancialcommunity,
• salesbystockholdersholdinglargerblocksofourstock,
24