Thomas R. McGuire, executive chairman of Coast Distribution System Inc., has established a plan, pursuant to Securities Exchange Commission Rule 10b5-1, to sell up to a total of 100,000 of the more than 520,000 shares of company common stock that he owns, the company announced Thursday (Nov. 18).
It is expected that those 100,000 shares will be sold in brokerage transactions over a period of eight calendar quarters, according to a news release.
McGuire is the company’s largest stockholder, owning 11.2%, of its outstanding shares (which does not include an additional 51,250 shares that he has a right to purchase on exercise of stock options).
Rule 10b5-1 under the Securities Exchange Act of 1934 allows officers and directors to adopt written plans for trading securities in a non-discretionary, pre-scheduled manner in order to avoid concerns about initiating stock transactions when the officer or director may be aware of non-public information. Such plans also allow officers and directors to diversify their holdings and minimize the market effect of stock sales by spreading them out over time.
McGuire stated, “I have decided to implement this plan at this time primarily to diversify my investment portfolio. I remain confident about Coast’s future prospects, and I have no plans to sell any additional Coast shares and will continue to own at least 420,000 shares even after completing the sale of the 100,000 shares under this Rule 10b5-1 plan.”