Covid Second Wave, page-46

To Maxy and other posters who are concerned about the recent conversion of options and shares, i see nothing sinister in this at all.

SKN has two public options, one listed and one unlisted. The listed option trades under the ASX code SKNOA and expire in December, 2020. The exercise price for these options is 10 cents per share so they are currently not in the money. The last trade price before trading was suspended was 3.1 cents. The unlisted options (expiry also December 2020) were offered as a sweetener in the recent non renounceable share offer and have an exercise price of 3 cents, so at the moment they are well and truly in the money. The only way to realise their value, however, is to convert them to ordinary shares through the payment of 3 cents each. As they are unlisted, they have no trading value. It makes sense that shareholders have already converted some of these unlisted options. No one in their right mind would be converting the quoted options SKNOA at the moment until they are in the money which means the shares price would have to be above 10 cents.

I picked up some unlisted options in the recent share issue and certainly plan to convert them when trading resumes, barring anything catastrophic happening. Actually, I applied for heaps more than my entitlement through the shortfall facility, but the directors exercised their discretion and only allocated me a handful of shortfall shares and refunded me the balance. I was very grateful to receive the small allocation, though, and took confidence in the fact that they didn't grab many thousands of dollars from me at the time. I since picked up a lot more shares in the market. If the company was in dire need of extra dollars and there was anything dodgy going on, surely they would have kept the full amount i sent them.

I hope the above will give a bit of reassurance to the faithful. Thank you all for your informative posts. I especially enjoy the level headed ones from MOM (and others). Good luck everyone when trading resumes.