The free share options are intended to be issued to those people and unvested until future predetermined hurdles are met. I have no problem with those already issued free share options, which were issued last year or before the merger proposal was announced. But, those, around 3m new free share options that are to be issued soon, are the big problem.
Those new free share options are intended to be unvested for some periods and work to retain key employees or stimulate the performance of those management people. However, those around 3m new share options are to become vested soon after they are issued. so, what is purpose of issuing those new free share options from the the stand point of the company, Biota?
In previous annual reports, some hurdles for some of free share options to become vested require the share price to be over $2 and increase as every year the hurdles are not met. But, the reality is that those free share options have never missed to become vested, in spite of the 68cents share price.
IMO, some of the current management people are looking for a personal fruitful exist after the merger deal. Shareholders in the coming shareholder meeting should question loudly why those free share options under Total Shareholder Return all become vested and the coming new batch of around 3m new free shares that are to be issued soon.
The independence of those directors is also questionable.
Just my opinions.
BTA Price at posting:
68.5¢ Sentiment: None Disclosure: Held
