I emailed and got the following response re: The insider trading:

The sale did not contribute to the slide. He did not hit bids in the open market. The shares were CROSSED to a group very close to us. Leo was caught, having purchased $2.5 million worth of shares at a price over $4.50. These were not stock options, and purchased with own hard dollars. Unfortunately, he used margin as a means to pay for the stock. Having the shares of Rainy drop below $1.75 (the margin level that Haywood was giving for Rainy shares) triggered a margin call. I hope this clarifies the situation for you. It is not something that Rainy should “press release” however we will answer that question for anyone who bothers to ask.

Sincerely,

Brad Baker