That still doesn't make sense to me, as they could just sell the options after 12 months, if wanting to avoid the extra CGT. For simplicity, if the share price was 22 cents in 12 months time, that's $220,000. The options, would be worth 20.2 cents (yes would be 20 or 20.5 but simplicity ) Or $202,000 ($18k less, which is what they are paying now).
Why cough it up now, just to get it back later? (in this example). Unless they had a lazy $18k lying around and they wanted to effectively "bank it" for 12 months... They must have money they don't know what to do with, is all I can say.... As far as dilution from the options being converted, that will be progressive and should really have already been factored in by the market.
VR1 Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
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