NextWave Wireless (NASDAQ: WAVE) amended a shelf offering late on Friday by selling stockholders of 9,101,718 shares of common stock to be periodically sold in one or more offerings. This stock has seen a huge run recently, and many investors get cautious on insiders selling shares after a huge move.
The filing was originally filed March 21, 2008 and at the time, about 92.7 million shares were outstanding before the offering. Since, about 10 million additional shares have been issued, changing the common stock to be outstanding following the offering to about 101.8 million shares and prompting the amendment.
The shares being sold by the selling stockholders were originally purchased in May 2007 for the acquisition of IPWireless. The mobile broadband and multimedia technology company will not receive proceeds from the offering. Very few of the selling stockholders will hold ownership of the company of greater than 1% following the offering.
We recently noted the company’s announcement that it was exploring the sale of its spectrum to focus on being a WiMAX and wireless technology company. This also was recently featured in our "10 Stocks Under $10" newsletter.
Shares of NextWave are down 2% in early morning trading to $6.75. The 52-week range is $3.35 to $10.44. While this would represent over 15-days volume if the shares all come out at once, the market seems willing to absorb at least a large portion of those shares.
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May 12, 2008