Gary Cohen, CEO of health IT company iSOFT (ASX:ISF), has revealed he has been forced to sell some shares as a result of his company's recent decline in share price.
Cohen said he had borrowed funds using his shareholding as security in 2008 to participate in iSOFT's rights issue.
At the time, the borrowing related to less than 1% of the then market value of ISF shares, and less than 15% of the total shares in which Cohen had a relevant interest, making the debt compliant with financial regulations.
But with iSOFT's share-price tumbling to $0.175 today from $0.500 in mid-June - and nearly $0.800 at the start of the year - this situation has changed and Cohen has been forced to sell up, he said.
He still holds around $2 million in liabilities left on shares in which he has a relevant interest.