Ann: Appendix 3Y - Guido Arnout, page-171

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Ignattious

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01/10/23

14:01

Post #: 70119157
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Originally posted by mjshackl: ↑

I'm an engineer and the profession involves a lot of managing risk. IMO, Guido had managed risk well here.

Engineering is a funny profession, we don't value our skills and knowledge well, especially considering the consequences of failure in many disciplines. Remuneration often comes secondary to outcomes. Holding out for a bonkers payday when a good one will more than suffice is not a rational approach in engineer world.

If I was in Guido's position, I would have done the same, exercised my options, then sold enough to pay tax and go free carried on what I have left, whilst strengthening the company's balance sheet. He's got more shares overall, plus a bit of walking around money. He's not getting any younger, what's the point of money if you don't spend it? He's reaping the rewards of years of very painstaking development. Anyone would think this money landed in his lap overnight.

It's a win win all around.

People can take it as a negative, only thing that matters are the outcomes from testing. How many shares Guido does or doesn't hold isn't going to change that.

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Why exercise at all ?

If he can see genuine potential he just sits on the options until they are worth 2,3,4 x what they are now, by that time he arguably can either get the money to convert (save or get a low interest temp loan) or sell the minimum amount of heads to convert the rest for a guaranteed pay day.

The only reason you would do it this way is if you were worried or not convinced about the end game which is a far cry from the vast majority of flogs on here claiming 60c - 2 dollar SPs.

4DS Price at posting: 13.5¢ Sentiment: Sell Disclosure: Not Held
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0 Great analysis

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