Fresh from its dismal IPO last month, Vonage said it will cover the costs if its own customers who bought shares of the company refuse to adhere to their agreements to buy shares. The plan was explained in Vonage's registration documents filed with Securities and Exchange Commission before the IPO and before customers started having second thoughts about their agreements to buy shares when the stock tumbles. Vonage set aside up to 13.5 percent of its $531 million IPO for its customers, selling to them via email and messages left on voice mail. The plan backfired when the shares, priced at $17, fell.
To read more about Vonage's plan:
- check out this article [1] from The Wall Street Journal (sub. req.)
Links:
[1] http://online.wsj.com/article/SB114904270342667141.html?mod=telecommunications_primary_hs