In the company's defense ( and no I'm not a company spokesperson ) If they had have factored in new oppy strike prices with fair value strategic contingency,,, everyone would have smelt a rat and asked,, WHY SO LOW !!.
It was put to me today in an off line argument ( no other name no pack drill) ,,,'' Daryl would you have complained about the preemptive esio resolution strike price if ALDP had come back successful!"
My answer to this was of course,,,, mate,,, I knew what you knew regarding unofficial but credible source ESI ALDP failure about the same week you found out, which was ages before the company's support for esio re-issue, let alone the AGM reso vote that I was compelled to abstain from,,, so from that premise alone, such loaded argument is totally invalid,,so Kelcorbett wrt;
Think New Option issue should be at 0.001 Per option.
Only fair and right after ALDP failure.
I consider in REAL TIME,,, A REAL fair value MUST be contiguous,and relevant to the ratio wrt the original formula used to formulate their original strike price,,,,
That being 150% of the Price at placement for the IP for the Tincom fiasco,,,, sp was 2.4c pre the Fiori Kos/foz dash for cash,,,, so 0.9c would appear to be a datum point if the company do not hold ordinary share holders in contempt. This has to be balanced up with the underwriter of course, but if it is not negotiated, there WILL be ramifications of the most unsavory kind I would suspect.
It annoyed the bejeezus out of me at least, at the time . 1.8C strike was extremely biased given the talk on the street wrt ALDp.
ESI Price at posting:
0.6¢ Sentiment: None Disclosure: Held
