My understanding is that the holders of these options aren't traders. They are people who have been part of the RAC journey and believe in the potential of the drug, so I can't see the incentive for them to make a quick buck by flipping heads for tails when it's still possibly undervalued.
I have made the assumption that they are all converting for the long term tax benefits. That is actually a huge saving if they are eligible for the CGT discount - use the recent 500,000 shares for example.
It's possible RAC have contacted these holders first to discuss the long term plans of the company to try get them to convert and top up the RAC coffers. If all option holders do this, there is close to $4m that will be added to the bank account which would be handy right about now.
IMO, DYOR, etc
RAC Price at posting:
79.0¢ Sentiment: None Disclosure: Held
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