No they will be free. It's only if they were options he would then have to pay the strike price. They will have to Dr the P&L with the no of shares issued x the issue price. My question is why did they issue them at $2.37 when the closing price on they say they were issued was $3.38. I'm pretty sure that is not allowed but could be wrong.
BIG Price at posting:
$2.22 Sentiment: None Disclosure: Not Held