I accept that the companies prime responsibility is to pursue shareholders interests, but in parallel with that is the responsibility to keep the market fully informed. Options are a part of the market.
There is a legal duty to do so that is enshrined in the disclosure obligations of the ASX.
They comprise the minimum a company must do.
When a company goes beyond the minimum by running a series of road shows to promote the company to investors. Does that not impose a moral obligation to be true to the market. It was only 2 months ago that HZR mounted the promotion campaign. To me it was fair and reasonable to do so, as the share price had been in serious decline, despite considerable technical progress. I would argue it is the boards job, to ensure the share price maintains a reasonable degree of contact, with the companies value by appropriate promotion when needed.
Ensuring the options were in the money, so that they would be converted appeared to be one objective of that campaign. It made good commercial sense to increase the probability that the next potential capital injection made it to the balance sheet. The need for further capital to build the demonstration plant had already been identified.
So the question remains why have they let the wind out of the sails
HZR Price at posting:
29.0¢ Sentiment: Buy Disclosure: Held
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