Ann: WGB announces Bonus Issue of Options to all shareholders, page-10

I think the announcement was careful to make sure they didn't use the word "free"?

Should the NTA of the fund go gangbusters up to expiry and rise to $3.50 or something yes you can sell your options at a good gain. Free money right?

But then the company's NTA will fall sharply when they flood the market with new shares at an issue price of $2.54, way below the NTA. So the NTA crashes, win on one hand lose on the other.

It may not necessarily be too bad for shareholders, I don't see any free lunch though.

I see it as neutral at best for the average punter, and one clearer winner.

I will probably get shouted down here for this view. Anyway I am a non holder I wish holders well. It is just a topic of curiosity all this to me how shareholders often react. I was also curious how large US companies traded after their stock splits last year. Free lunches everywhere..Yay.