Gildan CEO Glenn J. Chamandy puts up share disposition plan
04 May '07
3 min read
Gildan Activewear Inc announced that Glenn J. Chamandy, President and CEO, and a founding entrepreneur of the Company, is entering into a pre-arranged share disposition plan, under which he has authorized and directed a U.S. financial institution to sell up to 1.8 million of his total of 5.5 million common shares of Gildan, over a maximum 12-month period beginning on June 1, 2007 and ending on May 31, 2008.
This share disposition plan was adopted in accordance with the guidelines under Rule 10b5-1 of the Securities Exchange Act of 1934 and guidelines for Automatic Securities Disposition Plans under applicable Canadian securities laws. Plans established pursuant to Rule 10b5-1 permit insiders of a corporation to sell shares over a pre-determined period of time, subject to predetermined volume and price parameters.
A plan can only be established when the insider participating in the plan is not in possession of material non-public information. Once a plan is established, the insider retains no discretion over sales under the plan.
Although Gildan has been a public company since June 1998, Mr. Chamandy has not previously sold any of his founding shares of the Company. Subsequent to the sale of shares under the 10b5-1 plan, Mr. Chamandy will remain one of the largest investors in Gildan and his investment in Gildan will continue to comprise the majority of his personal net worth.
Mr. Chamandy reiterated his personal commitment to leading the next stage of Gildan's growth strategy, as well as his confidence in the future prospects for the Company. He indicated that his reasons for selling a portion of his shares include asset diversification, liquidity and to fund philanthropic giving projects.
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