Lions Gate Entertainment Corp. (LGF) Co- Chief Operating Officer Steve Beeks sold almost $11 million in stock rights at the record close, and he and two other executives filed to sell $6.6 million of shares next month.
Beeks, who is also president of “The Hunger Games” distributor’s film unit, sold rights to 700,000 Lions Gate shares on March 21 at $15.68 each, according to a filing yesterday. He paid $5.45 per right, generating a profit of $7.16 million. The sales were settled in cash, the filing said.
Beeks also plans to sell 140,000 shares over a three-week period ending April 30, according to a separate filing by the company, run from Santa Monica, California. General Counsel Wayne Levin filed to sell 240,000 shares and Chief Financial Officer James Keegan will sell 75,000 over the same period.
The future sales will take place under the U.S. Securities and Exchange Commission’s Rule 10b5-1, which allows insiders to pre-arrange stock sales. Lions Gate has gained 75 percent this year in anticipation of “Hunger Games,” which opened today, and purchase of “Twilight” studio Summit Entertainment.
A spokesman for Lions Gate declined to comment.
The company, based in Vancouver, closed at an all-time high of $15.68 on March 21. The shares were little changed at $14.53 yesterday in New York.
At yesterday’s closing price, the 455,000 shares planned for sale by Beeks, Levin and Keegan would fetch $6.61 million.
The share apprecation rights sold by Beeks are similar to stock options, with a fixed purchase price and an exercise price that fluctuates with the stock. Unlike an option, the holder doesn’t pay the exercise price. Rather, the holder is paid the difference between the sale price and the exercise price, in either cash or stock.
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