Lions Gate Entertainment Corp. (NYSE:LGF.A) Files An 8-K Other EventsItem 8.01Other Events
On April 9, 2018, a charitable remainder trust (the “Trust”) of which Dr. John C. Malone, a director of Lions Gate Entertainment Corp. (the “Company”), is the sole trustee, entered into a written stock sales plan in accordance with the guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended, and the Company’s policies regarding securities transactions.
Under the Trust's stock sales plan, a broker not affiliated with the Company may sell up to 106,172 of the Company’s Class A voting shares and 226,828 of the Company’s Class B non-voting shares over a period commencing on or about April 16, 2018 and ending on or about December 17, 2018. The number of shares to be sold under the stock sales plan will be made at specific market prices and subject to specific limitations specified in the plan. Dr. Malone will not influence how, when or whether to affect sales under the plan.
The shares are being sold in connection with required distributions from the Trust, and each tranche of shares represent approximately 1.8% and 4.2%, respectively, of Dr. Malone’s aggregate ownership of the Company’s Class A voting shares and the Company’s Class B non-voting shares.
Rule 10b5-1 plans permit individuals who are not in possession of material non-public information to establish pre-arranged plans to buy or sell company stock. These plans can minimize the market effect of insider purchases or sales by spreading these purchases or sales over a more extended period. Additionally, insiders can gradually diversify their investment portfolios and can avoid concerns about whether they had material, non-public information when they sold stock.
Specific sales transactions under the stock sales plan will be disclosed publicly as required by applicable securities laws.