All officers and directors, and investors with 10% positions in companies face insider trading issues and restrictions when trying to realize on their efforts and investments. This often includes daVinci Capital Group.

Our objective at daVinci is to help companies grow and become recognized by public market investors with higher valuations and greater liquidity. We are actively involved in this process as members of Boards, bringing additional ideas and resources to our portfolio companies. We are not short-term traders of stock, but investors seeking to build value.

But, we also have the objective and obligation over time to realize on our investments. How can this be done as affiliates?

Our approach to this issue is to have an arm’s length investment advisor (“IA”) to independently manage the realization of our investments over time following some initial general directions/rules. The IA is skilled and experienced in a variety of techniques to manage the process with minimal market impact. The IA process (including the resources of our prime broker) employs a variety of techniques to achieve liquidity while mitigating risks.

Our policy (which the IA must follow) is to never short sell a portfolio company shares – i.e., to never adversely affect our companies’ value, or “bet against them” as we are solely long investors. However, hedging against market indices and sector groups may be desirable through the process to accomplish liquidity and risk management goals for our investors.

In this manner we can continue to add value while realizing on investments according to our investment thesis.