They actually have to pay 6c for these shares. They are not "free" shares, they are free options to buy shares costing $300,000 to exercise. So in reality they would not bother unless the SP was very well supported and north of say 7c in my opinion. It maybe shows confidence the price will be at least this? (not fantastic though) Plus the company gets $1.5m working capital if they all buy in. We are all whingeing that they have no shares and now they can. 1. Buy yours @ 3.7c or 2. Buy from the company at 6c
Which is the better outcome for the company if they were to buy? Sorry, I do not see this as a negative, but I have to agree with tacairs argument against the SB performance rights that where granted. Although I was specifically told that they will not be given if the SP is down but better than 75% of the "peers" in the first KPI.
