Ann: Antisense Therapeutics CEO announces retirement, page-76

I’d be okay with the scale of the PAB sign-on deal. PAB has 2.06 bill shares outstanding, conveniently three times ANP’s, so 8 million PAB options equates to 2.67 billion ANP share options, spread out over 3 years in 4 tranches of 667,000 options each year.

At PAB’s close of 1.9c and ANP’S close of 10c, the PAB strike at 4.5c equates to an ANP strike of 23.5c . Similarly 5c equates to 26.5c and 7c translates to an ANP strike of 37c. Not to mention that if 43% above the share price is higher than these prices at issuance, then that price becomes the strike.

At first half CY24 hypothetically, assuming the phase 2b trial is successful, CG would be entitled, in the PAB model translated to ANP, to exercise 1.33 million ANP shares at about 25c average strike. At a share price of say 60c at that stage, would be a bonus of about $465k and a share dilution to other ANP shareholders of 0.2%. Totally reasonable. PAB have the scale about right imho.

As Sam made the point, it’s not the options issuance, but the potential scale of Res 2’s option issuance. Assuming the 67 million are issued (why ask for them to be approved if you don’t intend to use them), that is 10% dilution to existing shareholders, and a potential windfall of $20-$30 mill for ESOP grantees with no risk of loss.

I find it contradictory from you that you say CG doesn’t need the money, but giving her a money incentive is good.

I agree it’s good, at the right scale.