Option holders paid 0.2c for each option when they were issued. Conversion price = 3.4c so total paid per share = 3.6c if options converted.
On the other hand, option holders can currently buy shares on market for 3.0c, so if they do, then total paid per share = 3.2c per share, 0.4c or 11% cheaper.
When the options were issued in 2012 the SP was 1.6c. Now the shares are 3.0c so that's a 88% gain in that time. So those buying shares at the time have made the better choice as it turns out today.
However, anyone buying options does so for the leverage, but they are riskier. As it also turns out, options subscribers have had plenty of chance over the 4 years to sell their options at a good profit - trading as high as 2.8c early in 2013 and ranging in price above 1.0c for most of that 4 years. In fact the options have traded above 0.4c for almost the entire time over that 4 year period - a 100% gain to any original subscriber if they sold. So the original options subscribers have had their chance to do equally as well or better than shareholders over the last 4 years based on the purchase price at the time of the options issue.
As to raising only $3M rather than $10M if I was a shareholder (and I am again, bought back in at 3c) I would prefer the company only raises what it needs when the SP is low, and if more needed then raise again later at a higher SP - less dilution.
As to management getting on with the job, well their job is to run the company the best they can. Our job is to decide whether we back this horse or some other horse that will make us more money...its not more complicated than that.
Cheers, Sharks.
CDY Price at posting:
2.9¢ Sentiment: Hold Disclosure: Held
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