Windfall to LAF
Greg Lee, the chief financial officer of the LAF told Statesman in a piece headed Demand Media IPO delivers windfall to the Lance Armstrong Foundation:
"This was a very valuable way for a nonprofit organization to have their brand and name and image and likeness promoted in a very innovative way" that raised awareness among millions of people about topics the foundation works to promote.
On Tuesday night, the foundation sold 115,000 of its own shares, and 68,000 shares that Armstrong had donated, at the $17 price, and will receive the money "in a matter of days," Lee said.
"Bottom line, the foundation will receive $3.1 million to fund programs for people fighting cancer." In addition, the foundation still has 68,000 shares that it will be able to sell in six months.
There's no way to tell what the stock price will be when the foundation sells those shares, Lee said. At $17 a share, the stock is worth $1.1 million.
Lee said the Demand Media partnership has proven to be "one of the more innovative relationships" the foundation has entered into. It also has licensing deals with Nike, Bayer Aspirin, Trek bicycles, Oakley sunglasses and RadioShack.
Those agreements provide a healthy revenue stream for the foundation, he said. They represent about 25 percent — roughly $10 million to $12 million a year — of its annual revenue, which was $48 million last year.
Armstrong also received warrants to buy Demand Media stock when he negotiated a separate endorsement deal in 2008. He was not listed among the shareholders selling their stock in the IPO.
Capital Sports & Entertainment, which represents Armstrong, received a smaller number of warrants in 2008 and offered some shares in the IPO.
http://www.statesman.com/business/demand-media-ipo-delivers-windfall-to-the-lance-1212492.html
Greg Lee, the chief financial officer of the LAF told Statesman in a piece headed Demand Media IPO delivers windfall to the Lance Armstrong Foundation:
"This was a very valuable way for a nonprofit organization to have their brand and name and image and likeness promoted in a very innovative way" that raised awareness among millions of people about topics the foundation works to promote.
On Tuesday night, the foundation sold 115,000 of its own shares, and 68,000 shares that Armstrong had donated, at the $17 price, and will receive the money "in a matter of days," Lee said.
"Bottom line, the foundation will receive $3.1 million to fund programs for people fighting cancer." In addition, the foundation still has 68,000 shares that it will be able to sell in six months.
There's no way to tell what the stock price will be when the foundation sells those shares, Lee said. At $17 a share, the stock is worth $1.1 million.
Lee said the Demand Media partnership has proven to be "one of the more innovative relationships" the foundation has entered into. It also has licensing deals with Nike, Bayer Aspirin, Trek bicycles, Oakley sunglasses and RadioShack.
Those agreements provide a healthy revenue stream for the foundation, he said. They represent about 25 percent — roughly $10 million to $12 million a year — of its annual revenue, which was $48 million last year.
Armstrong also received warrants to buy Demand Media stock when he negotiated a separate endorsement deal in 2008. He was not listed among the shareholders selling their stock in the IPO.
Capital Sports & Entertainment, which represents Armstrong, received a smaller number of warrants in 2008 and offered some shares in the IPO.
http://www.statesman.com/business/demand-media-ipo-delivers-windfall-to-the-lance-1212492.html