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Ann: Proposed issue of Securities - LKE, page-3

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24/05/21

17:30

Post #: 53380741
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Originally posted by Ralphptf: ↑

1.5M options issued at a cost of $100 with value at conversion ($0.30) of $450,000.00. Have I misunderstood?

For every cent above 30c at conversion the value of the shares increases by $15,000.00 (less the $100 package cost on the first cent).

As a shareholder I would be interested to learn what the cash value of the financial services provided was and what those services were. I'm sure the provider of the services believes (as do I) that the future value of these options (and resultant shares) will well exceed the nominated $0.30 conversion price or else they wouldn't enter into this arrangement. My concern lies in the perceived value of the services to the shareholders and the upside potential far outweighing that value in the not-too-distant future.

At a conservative estimate (in my own mind) of $.0.73/share estimated by Corporate Connect in their recent analysis, this package will be worth $643,900 after costs in only 12 months. As we near construction completion, and with the current and projected climate for our product, this could be a conservative estimate.

My personal belief is that the use of options as incentives and as supplier/service payment is a flawed concept because it continually skews perceptions of share value.

Managers get paid a salary to manage and lead. By all all means provide a cash incentive as is provided to other workers. If that doesn't work for managers they can buy shares on the market with the cash incentive payments or go somewhere else. Current practice shows very low hurdles for many managers in many companies in achieving these incentives (I've actually seen one package publicly offered to a manager where it would be awarded if the share price dropped). If we need to pay managers more let's do it, but let's get away from the short term focus on share price that skews decision making and puts senior management into the same frame of mind / frame of reference as politicians.

We need to think long term. And we need to act accordingly. The Shareholder Value argument has severely damaged our economy in my view and continues to skew decision making into the now, losing sight of the future.

I may be wrong. Married twice and had 6 teens. Used to being wrong.

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I don't thing you are wrong.
Steve has a track record of unusual decisions that look like not in the best interest of existing shareholders although there may be a method to this madness that we are not privy to know. We remember him selling his shares just before Xmas for peanuts because he needed $50K, and capital risings at lower prices than before. I am preparing for his next announcement that is likely he will be selling a substantial number of his shares to exercise the options expiring on the 10th of June. One wonders if it would be best for LKE to be taken over - this could improve some of these issues.

LKE Price at posting: 25.0¢ Sentiment: Buy Disclosure: Held
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Last 6.0¢		Change 0.000(0.00%)		Mkt cap ! $99.55M

Open	High	Low	Value	Volume
6.0¢	6.1¢	5.9¢	$195.4K	3.249M

Buyers (Bids)

No.	Vol.	Price($)
1	146519	6.0¢

Sellers (Offers)

Price($)	Vol.	No.
6.1¢	50193	2

View Market Depth

No.	Vol.	Price($)
1	146519	0.060
16	1256257	0.059
22	2381594	0.058
9	1801765	0.057
7	1185139	0.056

Price($)	Vol.	No.
0.061	25000	1
0.062	463821	3
0.063	259316	7
0.064	416129	5
0.065	262585	5

Last trade - 16.10pm 31/05/2024 (20 minute delay)


Last 6.0¢		Change 0.000 ( 0.00 %)
Open	High	Low	Volume
6.0¢	6.1¢	5.9¢	1537454
Last updated 15.53pm 31/05/2024 ?

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Ann: Proposed issue of Securities - LKE, page-3

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