Ann: Notice of Annual General Meeting/Proxy Form , page-6

re: Ann: Notice of Annual General Meeting/Pro... I am not that comfortable with the options proposal. In fact it reeks of "snouts in the trough" to me. SER already gave away 25% of Cultana to KSN and Rechner and Muzzin hold a great chunk of KSN. If you add the proposed options to the Secretary and geologist dilution is more than 7.5%.
If options are exercisable at say 20c and the SP could easily hit 40c then the option holders would contribute $5.6 mil to the company and walk away with $5.6 mil (assuming they exercise all their options) This increase in the company's bottom line benefits all shareholders. I cant really say from the announcement how much the company will get from the proposed arrangement but I guess its much less than $5.6m.
The announcement mentions aligning interests with the shareholders. I thought those nice fat salaries too care of side of things not to mention the substantial share holdings of some of the beneficiaries.
How would AVATAR and some of our insto investors view this?
I usually support management and might be missing something here but right now its a "No" vote from me.
flatchat
PS: As For Tins comment
"imagine what a photo of nice polished cut core with visible gold and copper would do to the sp"
I always thought you could get some ideas of drill results from visuals but I better leave it at that and keep my cynical views to myself.