Ann: Appendix 3B, page-5

Hi Rocket 32

I think this is great news and hopefully a prelude to other news to come. By coincidence I was looking at the 2015 Annual Report for TSN the other day (it was a rainy weekend! Lol) and recalled seeing references to options at the TSN level ... I will have another look soon and post them.

However, this looks great as it is aimed at the TSI employees .... the very people you need to keep motivated and focused during a trade sale process (which is why I am sure they do not vest for months ... ie mid-August).

The Options for 30m shares is a dilution of 1.6% … personally I see this as cheap if they deliver gains for the shareholders ….. and for the Board to make this call at this time I believe this is a clear indicator that they must have delivered, and hopefully big. It is also good to see it is not a straight bonus ... using options aligns their interests with ours and they will also have to cough up $600k to acquire the shares which is not small change for anyone, let alone someone in India were the average wage is far lower than here. I assume it is aimed at Key Management given these amounts but that is only an assumption.
I also note that a 2c exercise price is basically the current share price .... I assume if this being seen as a bonus / thank you to key management then this will be set way below where the Board expect the share price to be soon ... this s just a floor price from where go up (rapidly) IMO.
Another thing: these expire in 2018 so this indicates to me that TSN will have significant value then. If a TSN share is currently worth 2c including 25% of TSI and most of the sale proceeds from TSI are passed on as a dividend (which I believe will happen), then TSN must be planning on generating value through other avenues to maintain a share price over 2c in to the future.
In other words, a 2c exercise price in 2018 would indicate that the Board and Management expect TSN to be worth over 2c in 3 years even after TSI has been sold and most of the sale proceeds have been distributed….Which makes me think that TSN must already be planning on launching other projects using the existing TSN & TSI management team and the contacts that they have in India. Not sure what this would be as it would obviously have to be different to the TSI business that is sold but I reckon the Board and management already know! Maybe TSN will buy part of TSI?!?!
All just my thoughts having just read this announcement but, as I said at the start, I see this as the prelude to some great news to follow …. Onwards and upwards TSN and well done to the TSI Key Management … I reckon we will all see soon that they have earnt every penny of the money they make when they exercise these options!
MartyW