Hi Lost Not sure if this is good news or bad news. Does it mean...

Hi Lost

Not sure if this is good news or bad news. Does it mean that our management is not ramping the shares to put the rights in the money (good sign of integrity within management), or is it a bad sign that earnings are not going to be better than 10% over last year?

Just trying to dig a bit deeper (Note 25, 2020 FY Ann Rpt), it looks like the 750000 rights granted on 25 June 2019 had an exercise price of $6.75 share price, but adjusted by 8.5%pa for one parcel and 11%pa for the other 2 parcels. The parcels also seem to be split in 2 with one expiring 30 June 2021 and the second 30 June 2022. So it looks like some are still live, expiring in 12 months time. Its all a bit convoluted, but it is obvious that the targets were nowhere near achieved.

The second lot of rights of 200000 granted on 1 August 2019, use a similar exercise price arrangements, and splitting of expiry dates.

With the lowest hurdle rate it looks like the share price would need to be over $8.50 for them to be in the money - a long way from $5.90. I am not against incentives, but when management is nowhere near achieving them, it becomes obvious that business targets are not being achieved.

So on the basis of my understanding of the performance rights issue, it looks like a bad sign and I would like to know what steps the Board is taking to address this issue. Maybe putting up the For Sale sign, might be the best prospect?

Cheers Westwind