Filing Allows Up To 35 More Stakeholders
CHICAGO--Fallon McElligott has filed documents with the Minnesota Department of Commerce that allow the agency to issue an additional $6.5 million of privately held stock.
According to the documents, the proceeds will be used for "ordinary corporate purposes, including working capital."
Agency chairman Pat Fallon, however, said the filing is not designed to raise cash but is simply a "procedural requirement." Said Fallon, "We have a certain number of shareholders where we have to do this for legal reasons."
While unfamiliar with Fallon's situation, Dan Sexton, registration supervisor at the Minnesota Commerce Department, said such filings enable companies to add shareholders.
The move allows the agency to sell 52,000 shares of privately held common stock to as many as 35 Minnesota residents at $124.59 per share.
Recent hires who could become shareholders include David Lubars, the creative director in Minneapolis, and Alison Burns, New York office president.
Officers and directors who hold 5 percent or more of the agency's stock are: Fallon; Bill Westbrook, president and creative director of its New York office; Irv Fish, chief financial officer; Fred Senn, partner and group director; Joe Duffy, president of Duffy Design and Revolv; managing director Steve Sjoblad; and art directors Dean Hanson and Bob Barrie, according to the documents.
Such filings are not uncommon for the agency. It issued 250 shares valued at $24,947.50 earlier this year, according to the documents.
Fallon, which reported billings of $486 million in 1997, has 33 shareholders, all of whom hold one class of common stock, the filing said.