A corporate advisor, and Merchant, is not appointed to give your investor relations service. Think of them as advisors to the board in case the company gets M&A offers, and to help the board in setting up the firm for such M&A ain the future, and if need be advise on structuring any funding arrangements etc.,.
By giving options the company is not giving away equity. They are making Merchant pay 6c for converting the option to a share and that will bring in $3Mn to the company when do convert. The options were out of the money at the time of announcement.
Merchant will provide a service and are not getting freebies. If they wanted they could have bought the shares on market. And they could drivie down the price to get their fill.
AIMO. DYOR.
Ann: Appointment of Corporate Advisor, page-9
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