i'm voting against, page-10

Well my brief take on the situation is as follows:-

Govt has brought in new rules to Tax options upfront and this has led to lots of companies abandoning the usual option issuing path. Accordingly alot of companies have been investigating alternative means of providing a non salary incentive to staff that is cash neutral (i.e. no cash drain on the company). Thats is where this ann is coming from ...


So....

Firstly, A fairly detailed report so a takes a while to absorb... still not sure I have it but ...a couple of things to note from announcement re performance shares:

1. They are "Performance shares" and are not issued unless a target is acheived the targets are :-

Tranche 1 - Share price of 4c
Tranche 2 - Share price of 5c
Tranche 3 - Share price of 6c

May I remind everyone the the last traded price was 2.1c

2. From the Ann "...The Performance Shares will each be issued at the greater of $0.012 or that number which is $0.002 less than the share price on the date of issue. The number of Performance Shares issued multiplied by the share price will constitute the loan amount."

3. From the Ann "...The Shares will each have an issue price of not less than 80% of the average market price of shares over the last five days on which sales in the shares were recorded before the date of issue."

4. So Cap is going to the directors (only on acheivement of target price). If the stock get to 4c I for one will twice as happy as I am right now with a SP at 2.1c.

5. This essetially gives them golden hancuffs... know one would jump ship if they had 30m or 60m shares within their grasp . Gives them a massive incentive to pull the SP higher. IMO... Although I would have thought the size of the share parcels is a bit excessive...

6. Suspect the plan was hatched when the the stock was range bound in the 1.2-1.3c. thus the initial mentioned price at 1.3c.

7. I think the unseasonal weather has caught them out. I expect that the plan was to spud the first well (2 weeks ago) let the share price rise naturally then announce.


8. Being a relatively new share holder ...it does not bother me at all.... However people who have been holding a long time will not see it that way I expect. It depends on your perspective and your entry price.


Finally,

I say bring on the Spud ...then the gas .... then bring on the Traunche 1 Target price of 4c... I really hope they hit and exceed the Traunch 3 target of 6c... Some will be in multibag territory at 6c.