"Toot Toot", page-123

Hi Biljor,

Firstly, there is no such thing as a silly question, that’s how we learn.

I was just like you. Despite having 16 years investment experience I had never bought any options. I won’t talk generally but just about AVRO as I understand it and please remember I am not a professional.

One AVRO share gives you the “right” but not the “obligation” to exercise that right and convert the option into a regular AVR share at a price of $8. This right exists at any time up until the 18th of December 2021. This options were given free as part of a CR over 2 years ago and I didn’t appreciate their potential value at the time.

So these option holders who doubt the future of the company are selling their options for what ever they can get. At 70 cents I though they were a no brainer and bought some. As the price of AVR has appreciated I also bought more at $1.50 So to make money you need to be able to sell your converted AVRO - AVR shares at more than what you paid for the option + the $8. So in my example it’s $8.70 and $9.50. If all goes well AVR (IMO) could be more than twice that price at years end.

For me they are a way to leverage some extra shares with little outlay and then wait and see what happens before I exercise them. I could technically exercise them at any time and it is as simple as a bank transfer of funds. I have already received the paperwork and instructions from the company.

So for those considering purchasing the AVRO options it really depends on where you see the SP in early Dec. It’s much less risky to wait until then than to exercise early as some suggest. Wait until we know as much as possible about the FDA EFS study and the SP. What I do like is that they could potentially give the company 19 million of capital if they all get exercised despite the dilution for non holders.

Now the question is at what price do the options cease making sense? That’s where everyone needs to DYOR.

Good luck and remember this is not advice.