I agree with your reasoning – for, finding some way, to benefit IMO current Optionholders and the Company, financially, by not being left with the current situation whereby it is most likely that the majority of current listed Options not being viably exercised by 02Mar18.
whereby another ASX-listed Co. – Legacy Iron Ore (LCY) – was able to avoid the occurrence of such a similar situation back in 2012/13.
They could not extend the expiry date of their existing options – which expired on 31Dec12 - but did obtain approval from the ASX – on 18 Nov 13 – to have replacement Options listed, & issued on the same basis as their existing Options : https://hotcopper.com.au/posts/12586694/single
the relevant extract being :
A total of 50 holders in each class of option were required to be achieved in order for quotation of those options under ASX Listing Rule 2.5 condition 6.
Their NEW options were issued on a 1 for 1 basis to the holders of the 31Dec12 options
- @ an issue price of 0.001c per option
– at an Exercise price the SAME as the expired Options
– and an expiry date of 31Dec14 for the NEW Options, i.e. exactly 2 years after the old Options expiry date.
It took Legacy 10 MONTHS to get that approval in place – which IMO took so long because of the Exercise Price of those newly-issued options compulsorily having to be far in excess of LCY’s SP at the time.
So effectively the holders of the old Options got a CGT Credit, for their entire “REALISED” losses (due those Options expiring worthless) & only had to pay the company 0.1c / option – for being issued totally new ones !!
Given that if 88E’s BoD chose to take a similar course of action as LCY – in respect of 88E’s 02Mar18 Oppies
IMO it would be an absolute soda for the Company to at least receive the mandatory Ex Price of 2c per NEW Option (as it presently stands for the current Oppies) – but albeit likely to be later than 02 March 18 (Because of the Co’s present planned operations resumption date of April/May – on IW2.
IMO that’s a better proposition for the Co., than doing nothing otherwise.
I accept though that – if the new issue proposition was adopted – well ahead of 02Mar – then it would likely increase the present SP of the Oppies to a level less than 2c below the heads SP – not only due to the obvious leverage – but also because present Oppie holders MIGHT be reluctant to part with their current holdings, before 02Mar. knowing the benefits they’re going to enjoy.
Lastly – as a carrot to get holders of NEW Options - to exercise them after listing date (post 02Mar) the Co. could make then make a new issue of shares – even on a Share Purchase Plan basis @ worst – adopting the present MO of small-cap miners/explorers which set the new issue price @ a certain %age below the then shares’ SP.
That new issue of shares would also be available to NEW Optionholders provides they EXERCISED their new options – each at the mandatory 2c – before the opening date of the new share issue
e.g. given that by April18 the current SP has risen to say 2.5c – and stays there, or above, soon after -
the Co. then announces a new shares issue of 1:1 @ 2c each
- then “funded” NEW Option “exercisers” get a “double whammy” of
at least earning a realisable profit of
0.4c, on selling their new shares – allotted by the Exercise of their Options - @ a Sell price of say 2.5c
(2.5c less 2.0c Options EP less 0.1c Options Issue price)
0.5c - (2.5c less 2.0c New shares issue price).
I have posted the above on this Thread – because of its relevant title, and being created after I had posted the original on other Threads earlier today, so trust it has not bored everyone else who have read the original, particularly Serena.
My apols for the verbiage compiled but I have done it that way for those who might find it difficult to understand any sort of proposal, if put into “bullet point” form and in corporate jargon beyond the comprehension of non-accountants. Guata.
88E Price at posting:
1.8¢ Sentiment: Buy Disclosure: Held
(20min delay)