the complete idiot’s guide to the election., page-36

SH said,

No, Bob, that is not obscene

Response


Yes it is as that would represenat approx 15 % of the company is converted (but must be taken into account as fully diluted valuation)

- all you have quoted is a large number - and then claimed it to be obscene ... ANY options package has FIVE primary criteria:

1. The strike Price of the Options
2. The expiry date/s of the Options
3. The quantity of the options
4. The vesting date of the options
5. The current share price

Response

I agree that the above are relevant, WHY have we not been informed is the real question.

If as you set out below the various prices are agreed , then I would have no great difficulty.

But I observe that you have not made any comment about your opinion of the 150 Mill oppies have a strike price of say 25 cents and all of them vested on the same date in one go.

Would your attitude be the same ?

Please advise your position.

CB


So, lets say Cottee was given 150 million options (your number); which expired, in equal parts (30 million every year), in June 2013, and on the anniversay for the following 4 years.

If the strike prices were: 50c, $1, $2, $5, $10 and they expired (in equal parts) on the anniversay of their grant date (say June 2012) then I would have no problem with that.

If the CTP share price was 51c, $1.10, $2.20 $5.5 and $11 on the anniversaries, and Cottee chose to exercise his options, then he would make some money but shareholders would be laughing all the way to the bank ... don't you agree ?