Hi fellow SH. Hoping to start a bit of discussion surrounding this annual report from NYR.
By my (admittedly back of the envelope) calculations, these 60 million options effectively dilute the companies existing 110M shares on issue, by over half... (60/110=54.54%).
Many of these will go at a great discount to both IPO and today's share price and should be easily achieved with little incentive to reach a share price higher than 24c.
And worse--- 10M shares to be exercised at a price TBC in which fair value was given as 0.0128. I'm not entirely sure how this is calculated, but it seems a low ball offer to me when compared with the other fair values stated to be around the 0.12 mark.
To put this blunty, should this actually turn out to be the 1B company we all hope it will, (a further) 10% (100 million) of that company will go to our already handsomely paid Graham Kelly for peanuts.
Obviously this would be the least of our worries and still result in a handy few bags, but the thing that really concerns me is the direct contradiction from the chairman's address which (as highlighted above) specifically talks of the intention to avoid dilution. Trust in management is a cornerstone of investment for me, and this, I see as a red flag.
I would be very interested to hear peoples take on this and will be happy to stand corrected. For full disclosure, I personally hold a small parcel in this stock (approx 1% of my portfolio).
I was looking to increase this but think I will hold off for now. I see potentially in the lead candidates but they are a long way from market, let alone entering human trials and I sense there is more to this story as it unfolds before any major re-rates.
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