yes, this is all right if the prices stay the same, but if the...

yes, this is all right if the prices stay the same, but if the effect of the bonus is to cause the value of the heads to reduce by 1/8 then you have 1/8th more shares each worth 1/8th less, which leaves the value of your holding unchanged. Ditto for the options.

For the heads to each not drop in value by 1/8th, there would have to be something else affecting things, which would happen with or without the bonus. Apart from this, everyone hasn't increased the value of their holding, they've only increased the number of shares they hold. Otherwise you're effectively saying that giving all shareholders a bonus issue increases the total value (i.e. market cap) of the company - how can that be? Aren't we basically looking at the opposite of a consolidation?

I'm not being argumentative here and appreciate any feedback anyone else can give - i just can't see how it is a good (as opposed to neutral) thing.

I only hold options at the moment, so obviously won't be seeing any benefit, and will effectively see the value of my holding reduced if I don't convert to heads and receive the bonus issue.

cheers