As to the company benefitting from the options issue well they benefitted when they issued the options 4 years ago. They also gained additional funds from some that were converted over that period of time (about 10%?). Instead of getting additional fund by conversion now, they have simply raised what they needed by issuing a small amount of shares a price that the market will pay today (and obviously it wouldn't pay 3.4c, otherwise the options holders would have converted more).
The buyers during the 4 years didn't pay the company any money - they made an investment or trading decision based on the price at the time and their view of the company's prospects. That's their responsibility so if they have made the wrong decision they have to consider how to deal with that (sell at a stoploss, hold on and hope, etc).
I think people often also lose sight of the original purpose of an option. It is an option to buy, not a commitment. If you look at all options traded on various markets (stocks, commodities, indices, etc) a high % expire unconverted, for various reasons, including that the buyers ended up on the wrong side of the market. The commonly perceived benefit of options today is the attached leverage compared to the underlying shares. Anyone paying for them should understand that comes with an associated risk/reward. It is not the company's responsibility to ensure that options purchasers will end up in the money. Of course they will do their best because its also in management's interest, but they can't control the outcome, so it should always be a case of buyer beware.
Not everyone wins in the market. I have had and still carry today my share of losers. You won't ever hear me complaining about my losers, it was my decision to buy into them, and hold on to them if I haven't sold at my stoploss. My purchase of CDY at 3c this time might lose me money - I see already its traded at 2.8c today. That's the market for you.
Cheers, Sharks.
CDY Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
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