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PROSPECTUS |
618,057 Shares
E*TRADE GROUP, INC.
Common Stock
This Prospectus relates to the public offering, which is not being underwritten, of 618,057 shares of our Common Stock, which is held by some of our current stockholders.
The prices at which such stockholders may sell the shares will be determined by the prevailing market price for the shares or in negotiated transactions. We will not receive any of the proceeds from the sale of the shares.
Our Common Stock is quoted on the Nasdaq National Market under the symbol EGRP. On January 2, 2001, the average of the high and low price for the Common Stock was $7.42.
Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or passed upon the adequacy or accuracy of this Prospectus. Any representation to the contrary is a criminal offense.
The date of this Prospectus is January 5, 2001
No person has been authorized to give any information or to make any representations other than those contained in this Prospectus in connection with the offering made hereby, and if given or made, such information or representations must not be relied upon as having been authorized by the Company, any Selling Stockholder or by any other person. Neither the delivery of this Prospectus nor any sale made hereunder shall, under any circumstances, create any implication that information herein is correct as of any time subsequent to the date hereof. This Prospectus does not constitute an offer to sell or a solicitation of an offer to buy any security other than the securities covered by this Prospectus, nor does it constitute an offer to or solicitation of any person in any jurisdiction in which such offer or solicitation may not lawfully be made.
AVAILABLE INFORMATION
E*TRADE Group is subject to the informational requirements of the Securities Exchange Act of 1934, as amended (the Exchange Act), and in accordance therewith files reports, proxy statements, information statements and other information with the Securities and Exchange Commission (the Commission). Reports, proxy statements and other information filed by the Company may be inspected and copied at the public reference facilities maintained by the Commission at Room 1024, 450 Fifth Street, N.W., Washington, D.C. 20549, and at the Commissions Regional Offices located at 75 Park Place, New York, New York 10007 and 500 West Madison Street, Suite 1400, Chicago, Illinois 60661-2511. Copies of such material can be obtained by mail from the Public Reference Branch of the Commission at 450 Fifth Street, N.W., Washington, D.C. 20549 at prescribed rates. The Common Stock of the Company is quoted on the Nasdaq National Market, and such material may also be inspected at the offices of Nasdaq Operations, 1735 K Street N.W. Washington, D.C. 20006. The Commission maintains a World Wide Web site that contains reports, proxy and information statements and other information regarding registrants that file electronically with the Commission. The address of the Commissions web site is http://www.sec.gov.
E*TRADE Group has filed with the Commission a registration statement on Form S-3 (herein, together with all amendments and exhibits thereto, referred to as the Registration Statement) under the Securities Act with respect to the Common Stock offered hereby. This Prospectus does not contain all of the information set forth in the Registration Statement, certain parts of which are omitted in accordance with the rules and regulations of the Commission. For further information regarding the Company and the Common Stock offered hereby, reference is hereby made to the Registration Statement and to the exhibits and schedules filed therewith. The Registration Statement, including the exhibits and schedules thereto, may be inspected at the public reference facilities maintained by the Commission at Room 450 Fifth Street, N.W., Washington, D.C. 20549 and copies of all or any part thereof may be obtained from such office upon payment of the prescribed fees.
INCORPORATION OF CERTAIN DOCUMENTS BY REFERENCE
The following documents filed with the Commission (File No. 1-11921) pursuant to the Exchange Act are incorporated herein by reference:
1. E*TRADE Groups Annual Report on Form 10-K for the year ended September 30, 2000, filed on November 9, 2000, as amended by the Companys Annual Report on Form 10-K/A, filed on November 22, 2000;
2. Definitive Proxy Statement, dated November 22, 2000, filed on November 22, 2000, in connection with E*TRADE Groups Annual Meeting of Shareowners held on December 21, 2000;
3. The description of E*TRADE Groups Common Stock, $0.01 par value per share, and associated rights, contained in its registration statement on Form 8-A, filed on July 12, 1996, including any amendment or report filed for the purpose of updating such description; and
4. All reports and other documents filed by the Company pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of this Prospectus and prior to the termination of the offering.
Any statement contained in a document incorporated by reference herein shall be deemed to be incorporated by reference in this Prospectus and to be part hereof from the date of filing of such documents. Any statement modified or superseded shall not be deemed, except as so modified or superseded, to constitute a part of this Prospectus. E*TRADE Group will provide without charge to each person to whom this Prospectus is delivered a copy of any or all of such documents which are incorporated herein by reference (other than exhibits to such
documents unless such exhibits are specifically incorporated by reference into the documents that this Prospectus incorporates). Written requests for copies should be directed to E*TRADE Group, Inc., Investor Relations, 4500 Bohannon Drive, Menlo Park, California 94025. The Companys telephone number is (650) 331-6000.
THE COMPANY
The principal executive offices of E*TRADE Group are located at 4500 Bohannon Drive, Menlo Park, California 94025. The Companys telephone number is (650) 331-6000.
PLAN OF DISTRIBUTION
E*TRADE Group, Inc. (the Company) is registering all 618,057 shares of Common Stock, par value of $0.01 per share (the Shares), on behalf of certain selling stockholders. The Company will receive no proceeds from this offering. The Shares may be offered by certain stockholders of the Company or by pledgees, donees, transferees or other successors in interest that receive such Shares as a gift, partnership distribution or other non-sale related transfer (the Selling Stockholders). All of the Shares were originally issued by the Company in connection with the merger of PrivateAccounts, Inc. (PAI), a Minnesota corporation, with and into Domino Acquisition Corp. (Domino Acquisition), a wholly-owned subsidiary of the Company, with Domino Acquisition being the surviving corporation (the Merger). The Shares were issued pursuant to exemptions from the registration requirements of the Securities Act of 1933, as amended (the Securities Act), provided by Section 4(2) thereof. The Shares are being registered by the Company pursuant to the Agreement and Plan of Reorganization, dated as of October 19, 2000, by and among the Company, Domino Acquisition and PAI (the Agreement and Plan of Reorganization).
The Selling Stockholders will act independently of the Company in making decisions with respect to the timing, manner and size of each sale. Such sales may be made on one or more exchanges or in the over-the-counter market or otherwise, at prices and at terms then prevailing or at prices related to the then current market price, or in negotiated transactions. The Selling Stockholders may effect such transactions by selling the Shares to or through broker-dealers. The Shares may be sold by one or more of the following: (a) a block trade in which the broker-dealer so engaged will attempt to sell the Shares as agent but may position and resell a portion of the block as principal to facilitate the transaction; (b) purchases by a broker-dealer as principal and resale by such broker-dealer for its account pursuant to this Prospectus; (c) an exchange distribution in accordance with the rules of such exchange; (d) ordinary brokerage transactions and transactions in which the broker solicits purchasers and (e) in privately negotiated transactions. To the extent required, this Prospectus may be amended or supplemented from time to time to describe a specific plan of distribution. In effecting sales, broker-dealers engaged by the Selling Stockholders may arrange for other broker-dealers to participate in the resales.
In connection with distributions of the Shares or otherwise, the Selling Stockholders may enter into hedging transactions with broker-dealers. In connection with such transactions, broker-dealers may engage in short sales of the Shares in the course of hedging the positions they assume with Selling Stockholders. The Selling Stockholders may also sell Shares short and redeliver the Shares to close out such short positions. The Selling Stockholders may also enter into option or other transactions with broker-dealers which require the delivery to the broker-dealer of the Shares registered hereunder, which the broker-dealer may resell or otherwise transfer pursuant to this Prospectus. The Selling Stockholder may also loan or pledge the Shares registered hereunder to a broker-dealer and the broker-dealer may sell the Shares so loaned or upon a default the broker-dealer may effect sales of the pledged shares pursuant to this prospectus.
Broker-dealers or agents may receive compensation in the form of commissions, discounts or concessions from Selling Stockholders and/or the purchasers of the Shares for whom such broker-dealers may act as agents or to whom they sell as principals, or both (which compensation as to a particular broker-dealer might be in excess of customary commissions) in amounts to be negotiated in connection with the sale. Such broker-dealers or agents and any other participating broker-dealers or the Selling Stockholders may be deemed to be underwriters within the meaning of Section 2(11) of the Securities Act in connection with such sales and any such commission, discount or concession may be deemed to be underwriting discounts or commissions under the Securities Act. In addition, any securities covered by this Prospectus which qualify for sale pursuant to Rule 144 may be sold under Rule 144 rather than pursuant to this Prospectus.
In order to comply with the securities laws of certain states, if applicable, the Shares will be sold in such jurisdictions only through registered or licensed brokers or dealers. In addition, in certain states the Shares may not
be sold unless they have been registered or qualified for sale in the applicable state or an exemption from the registration or qualification requirement is available and is complied with.
Under applicable rules and regulations under the Exchange Act, any person engaged in the distribution of the Shares may not simultaneously engage in market making activities with respect to the Common Stock of the Company for a period of two business days prior to the commencement of such distribution. In addition and without limiting the foregoing, each Selling Stockholder will be subject to applicable provisions of the Exchange Act and the rules and regulations thereunder, including, without limitation, Regulation M, which provisions may limit the timing of purchases and sales of shares of the Companys Common Stock by the Selling Stockholders. The Company will make copies of this Prospectus available to the Selling Stockholders and has informed them of the need for delivery of copies of this Prospectus to purchasers at or prior to the time of any sale of the Shares offered hereby The Company assumes no obligation to so deliver copies of this Prospectus or any related Prospectus Supplement.
At the time a particular offer of Shares is made, if required, a Prospectus Supplement will be distributed that will set forth the number of Shares being offered and the terms of the offering, including the name of any underwriter, dealer or agent, the purchase price paid by any underwriter, any discount, commission and other item constituting compensation, any discount, commission or concession allowed or reallowed or paid to any dealer, and the proposed selling price to the public.
The Selling Stockholders will be responsible for any fees, disbursements and expenses of any counsel for the Selling Stockholders. All other expenses incurred in connection with the registration of the Shares, including printers and accounting fees and the fees, disbursements and expenses of counsel for the Company will be borne by the Company. Commissions and discounts, if any, attributable to the sales of the Shares will be borne by the Selling Stockholders. The Selling Stockholders may agree to indemnify any broker-dealer or agent that participates in transactions involving sales of the Shares against certain liabilities, including liabilities arising under the Securities Act. The Company will indemnify the Selling Stockholders against claims arising out of any untrue statement of a material fact contained in this Registration Statement or any omission to state therein a material fact necessary in order to make the statement made therein.
The Company has undertaken to keep a Registration Statement of which this Prospectus constitutes a part effective until the earlier of the disposition of the securities offered hereby or January 5, 2002. After such period, if the Company chooses not to maintain the effectiveness of the registration statement of which this Prospectus constitutes a part, the securities issuable upon exercise hereof and offered hereby may not be sold, pledged, transferred or assigned, except in a transaction which is exempt under the provisions of the Securities Act or pursuant to an effective registration statement thereunder.
SELLING STOCKHOLDERS
The following table sets forth the number of shares of Common Stock owned by each of the Selling Stockholders. Except as indicated, none of the Selling Stockholders has had a material relationship with the Company within the past three years other than as a result of the ownership of the Shares or other securities of the Company. Because the Selling Stockholders may offer all or some of the Shares which they hold pursuant to the offering contemplated by this Prospectus, and because there are currently no agreements, arrangements or understandings with respect to the sale of any of the Shares, no estimate can be given as to the amount of Shares that will be held by the Selling Stockholders after completion of this offering. No Selling Stockholder beneficially owns 1% or more of the outstanding shares of Common Stock. The Shares offered by this Prospectus may be offered from time to time by the Selling Stockholders named below.
Name of Selling Stockholder | Number
of Shares Beneficially Owned |
Number
of Shares Registered for Sale Hereby (1) |
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Ackley Family 1998 Trust | 12,399 | 12,399 | |||||
Joseph Albero | 213 | 213 | |||||
Douglas Baker | 196,246 | 196,246 | |||||
Douglas A. Baker TTEE, Douglas
A. Baker Equity Fund Grantor Retained Annuity Trust dtd 5/31/00 |
49,809 | 49,809 | |||||
Derek Stoneburg, TTEE, Alexander
D. Baker 2000 Irrevocable Trust u/a dated 5/30/00 |
867 | 867 | |||||
Derek Stoneburg, TTEE, Dylan D.
Baker 2000 Irrevocable Trust u/a dated 5/30/00 |
867 | 867 | |||||
Derek Stoneburg, TTEE, Benjamin
B. Baker 2000 Irrevocable Trust u/a dated 5/30/00 |
867 | 867 | |||||
Stephen M. and Elisa M. Baroni | 213 | 213 | |||||
Brian C. Beh | 2,692 | 2,692 | |||||
William J. Bettman | 5,424 | 5,424 | |||||
Natalie Bonnett | 54 | 54 | |||||
Paul & Kristi Borchert | 3,483 | 3,483 | |||||
Kristi Borchert | 4,990 | 4,990 | |||||
Gerald & Kathleen Brinda | 155 | 155 | |||||
Dain Rauscher, Custodian, f/b/o Frank J. Brixius IRA | 3,210 | 3,210 | |||||
DLJSC tax ID#132741729, custodian, f/b/o Timothy Browning IRA | 2,301 | 2,301 | |||||
Smith A. Brownlie | 3,099 | 3,099 | |||||
B-Swing Inc. | 1,549 | 1,549 | |||||
Karol Carlsrud | 271 | 271 | |||||
CornerStone Consulting, Inc | 5,269 | 5,269 | |||||
Creekridge Capital LLC | 6,307 | 6,307 | |||||
Dana Crowell | 1,084 | 1,084 | |||||
John M. Dahl | 1,549 | 1,549 | |||||
Phil Ebner | 8,911 | 8,911 | |||||
Michael Ertmer | 4,339 | 4,339 | |||||
Timothy J. Ertmer | 1,636 | 1,636 | |||||
Robert J. Gallivan, Jr. Trustee of Defined Benefit Pension Plan | 1,621 | 1,621 | |||||
Thomas S. & Donna H. Gallivan | 1,616 | 1,616 | |||||
Gary Gambucci | 10,849 | 10,849 | |||||
Carolyn Gerr | 2,169 | 2,169 | |||||
GHF Investments | 2,169 | 2,169 | |||||
Steven Gitelis | 155 | 155 | |||||
Frederick C. Green, IV | 7,073 | 7,073 | |||||
F.C. Green, Jr. | 1,657 | 1,657 | |||||
R. Hunt Greene | 666 | 666 | |||||
Stephen Haas | 17,877 | 17,877 | |||||
Robert & Paula Harter | 1,628 | 1,628 | |||||
Melissa C. Henderson | 213 | 213 |
Name of Selling Stockholder | Number
of Shares Beneficially Owned |
Number
of Shares Registered for Sale Hereby (1) |
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Karisa L. Hong | 193 | 193 | |||||
Thomas Jaspersen | 1,642 | 1,642 | |||||
Andrew Johnson | 5,424 | 5,424 | |||||
Mark & Michelle Johnson | 1,549 | 1,549 | |||||
Michael C. Knowles | 1,297 | 1,297 | |||||
Al & Carol Konigson | 20,652 | 20,652 | |||||
Daryl Konrad | 1,654 | 1,654 | |||||
Joseph A. Lavely | 1,627 | 1,627 | |||||
Jill A. Lervold | 2,019 | 2,019 | |||||
Jonathan Lewis | 3,099 | 3,099 | |||||
George R. Long | 1,605 | 1,605 | |||||
Mackenzie C. Macdonald, UTMA Anne F. Macdonald custodian | 164 | 164 | |||||
Madeline G. Macdonald, UTMA Anne F. Macdonald custodian | 164 | 164 | |||||
Anne F. Macdonald CMT, IRA custodian | 2,951 | 2,951 | |||||
Macdonald Group Profit Sharing Plan FBO John Macdonald | 1,448 | 1,448 | |||||
Charles J. Maxwell, Jr. | 27,897 | 27,897 | |||||
Charles J. Maxwell, Sr. | 1,619 | 1,619 | |||||
John M. Maxwell | 4,831 | 4,831 | |||||
Peggy J. Meader | 1,632 | 1,632 | |||||
Tamara Merrill | 542 | 542 | |||||
Daniel R. Michels | 4,721 | 4,721 | |||||
James A. Mitchell | 9,658 | 9,658 | |||||
George M. Nall | 1,600 | 1,600 | |||||
George P. Nall | 30,377 | 30,377 | |||||
The NBLN Limited Partnership | 12,398 | 12,398 | |||||
Janyce Newman | 7,051 | 7,051 | |||||
Frank F. Pasacreta | 213 | 213 | |||||
Bryan Polster & Anne Yamamoto | 6,560 | 6,560 | |||||
Bryan Polster | 3,698 | 3,698 | |||||
Patrick Regan | 4,339 | 4,339 | |||||
Frank, Rimerman & Co. LLP | 19,892 | 19,892 | |||||
Smith Barney Custodian for the IRA of Thomas Rimerman | 2,976 | 2,976 | |||||
James Robbins | 813 | 813 | |||||
Bob Rueff | 2,169 | 2,169 | |||||
David Rupert | 6,509 | 6,509 | |||||
SLWK Venture Fund, LLP | 1,859 | 1,859 | |||||
SLWK Ventures, LLC | 1,549 | 1,549 | |||||
Rob Stirling | 8,136 | 8,136 | |||||
Richard J. Stream | 8,732 | 8,732 | |||||
Joanie Thompson | 1,301 | 1,301 | |||||
Susan Trammel | 3,146 | 3,146 | |||||
Kristopher Wilson | 1,627 | 1,627 | |||||
Andrew Wyatt | 981 | 981 | |||||
Anne Yamamoto | 3,698 | 3,698 | |||||
Michael J. Yates | 2,922 | 2,922 | |||||
Marcia L. Yurecko | 23,626 | 23,626 | |||||
TOTAL | 618,057 | 618,057 |
______________
(1) | This Registration Statement shall also cover any additional shares of Common Stock which become issuable in connection with the shares registered for sale hereby by reason of any stock dividend, stock split, recapitalization or other similar transaction effected without the receipt of consideration which results in an increase in the number of the Registrants outstanding shares of Common Stock. | ||
LEGAL MATTERS
The validity of the securities offered hereby will be passed upon for the Company by Brobeck, Phleger & Harrison LLP, Palo Alto, California.
EXPERTS
The consolidated financial statements of the E*TRADE Group, Inc. and its consolidated subsidiaries (the Company), except for E*TRADE Financial Corporation and subsidiaries, as of September 30, 2000 and 1999, and for each of the three years in the period ended September 30, 2000, incorporated by reference in this prospectus have been audited by Deloitte & Touche LLP as stated in their reports which are incorporated herein by reference. The consolidated financial statements of E*TRADE Financial Corporation and subsidiaries (consolidated with those of the Company) not presented separately herein have been audited by Arthur Andersen LLP, as stated in their report incorporated herein by reference. Such consolidated financial statements of the Company and its consolidated subsidiaries are incorporated herein by reference in reliance upon the respective reports of such firms given upon their authority as experts in accounting and auditing. All of the foregoing firms are independent auditors.
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