oppies premium, page-59

For those interested in the options...

These are straight forward company options...that is, they are simply execised at any time prior to expiry by filling in an options exercise form (you should get one sent out if you have recently bought options)...and paying the company the equivalent of 20c for each option you wish to be converted into a fully paid share.

There are two important dates on this occassion however...

The first date is the proposed record date for the IPO entitlement. To be eligable, options holders need to convert at least 5 business days prior to this record date date in order to have their options converted and new shares on the register in this time.

The second important date is the options expiry date. If not interested in the biofuels IPO, option holders may choose to hold off exerciseing until after the record date...but before the expiry date, which is 31 Oct, 2006.

Any options still held after this date however will expire and be cacelled...you will lose any rights to new shares.

It is likely the post record date execise price of the options may well be substantially less than 20c...we are currently waiting on confirmation from the company.

Given the likely share price of JPR (the shell) should be around 15c post record date, the options, assuming an adjusted execise price of 5c, will be worth some 10c....if however the exercise price gets adjusted to say 2c, they will be worth 13c

On this basis, those only interested in the JPR shell post record date, would actually be better off selling once the options pass 12-13c...below this, they may as well hold for the post record date cheaper exercise price.

After 12-13c however, the dual strategy kicks in...that is, buyers would be wise to convert in time for the Biofuels IPO record date, thereby ending up with shares in both issues.

If adopting the latter strategy, options provide a profitable return even as high as 22.5c...and higher if the IPO lists at a premium as expected.

This is why I keep saying watch out for any signals from the compnay that things are falling into place...off-take agreements, indications of a likely post record date board, potential JPR shell assets, suggestions the IPO may be underwritten, etc...as each milestone event is likely to result in an uptick of the trading range.

Cheers!