FMD, I don't know why Companies bother making these...

FMD, I don't know why Companies bother making these announcements, as no-one seems able to comprehend what has happened.

The JS 1mill Performance Rights are NOT options. They are Rights which have met a pre-ordained Performance milestone, are issued as Ords FREE, but, for various Australian tax purposes, are issued at a NOTIONAL price of 8 cents, which was the price on issue date. An Australian tax resident might be able to elaborate on the finer details of how ATO treats the issuance of PR's, but a fair market value price is definitely a peg in the ground

The other Announcement notifies the market that some people who were issued OPTIONS, with an ex price of 7 cents, have paid up funds into the Company coffers, in return for which they now own Ordinary shares. In all likelihood, these people probably sold some of their existing shares above 7, to raise the funds to convert the options and restore their holding back to the same level. It's a no risk trade, taking a small profit made on untradeable options when the opportunity arises

There were originally ~110 mill of these options, there are now ~ 106 mill still to be converted (or expire worthless if they end up being out of the money on the expiry date, i.e. less than 7 cents)

As I said, the only reason anyone would convert early is to take the small profit currently available by opting to exercise the options, which otherwise have no liquidity. If they have been stupid enough to convert early and hold on to them, they carry exactly the same risk as if they'd bought on market at 7 cents.

That is the beauty of an option, there is no downside risk of any capital until converted and paid for, and (usually) most options won't convert until near expiry.

The unfortunate side effect of having a large number of options near expiry and in the money, is it does provide a supply of stock which will come onto the sell side, as not all option holders will want to necessarily increase their exposure, and subsequently, this acts as an anchor to the share price until the overhang is cleared

To be clear, this scenario does not apply to the 500mill to be issued to EEA, which currently do not even exist due to milestones still to be met