I expect the employee options ALL have a "cashless conversion" opportunity ... so I doubt many will be exercised by the payment of the underlying option strike price.
How (I believe) it works ... say the SP is $1 at the time of conversion ... then a 25c option has a technical value of 75c ... so the employee owner of a 25c option will be issued THREE new shares for every FOUR 25c options they own. No cash changes hands. The options are valued via the Black Scholes formula.
https://www.mystockoptions.com/black-scholes.cfm
If I plug in the usual values RAC apply ... 2% risk free interest rate, 100% annual volatility and the 4 year expiry ... todays options allocated to our new Clinical Program Director are worth $537k based on the SP of 35c today. (Assuming the above and my calculations)
Personally - I agree and like this form of remuneration as it encourages share price growth and only benefits employees in that case. A great way to reward (great?) people when cash is limited.
I expect the employee options ALL have a "cashless conversion"...
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Last
$1.31 |
Change
0.020(1.55%) |
Mkt cap ! $217.2M | |||
| Open | High | Low | Value | Volume |
| $1.31 | $1.31 | $1.26 | $71.25K | 55.65K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 200 | $1.27 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.31 | 5950 | 3 |
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| Last trade - 16.10pm 26/04/2024 (20 minute delay) ? |
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Last
$1.31 |
Change
0.020 ( 2.18 %) |
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| Open | High | Low | Volume | ||
| $1.30 | $1.31 | $1.26 | 10789 | ||
| Last updated 15.59pm 26/04/2024 ? | |||||
| RAC (ASX) Chart |