XYZ founder sells his remaining shares in Rightside.
Daniel Negari, CEO of top level domain name company XYZ, has sold all of his remaining shares in Rightside (NASDAQ:NAME).
Negari made the disclosure in a Facebook post about the Google open source registry software today by noting that he is not currently a shareholder in the company.
In November of 2015, Negari filed a disclosure with the SEC noting that he and XYZ COO Mike Ambrose owned 5.2% of the outstanding shares of Rightside. Negari owned 2.7% of the company at that time.
In August, Negari filed with the SEC to report that he and Ambrose had sold shares that month, and their combined ownership fell below the 5% reporting requirement. At the time, Negari still owned 402,091 shares of the company.
Negari likely made a profit on his Rightside investment. His average purchase price was $8.80, and he sold about a fifth of his shares for around $12.00 per share in August.
Uniregistry CEO Frank Schilling recently sold shares on the open market, sparking a rapid drop in the company’s share price. Schilling’s ownership is now below the 5% threshold as well, so he no longer has to file statements with the SEC if he sells shares.
Shares in Rightside were up 5 cents today to close at $8.62. This is despite the news that Donuts, which uses Rightside’s backend registry services, has been collaborating with Google on open source registry software.
This Rightside cashout is likely all that is keeping XYZ afloat.
Interesting. So both Negari and Schilling have already exited all or some of their position in NAME.
Either they are feeling the cash flow burn or their confidence in new gTLDS as a whole has disintegrated.
Typically one doesn’t acquire 5% of an illiquid publicly traded stock as a shorter term investment.