Wow - this is not good as far as I can understand!!! Surely this would need shareholder approval???
This Offer will have proceeds of $35 and will cost $42,922, therefore company will have to foot bill of $42,887 just so ppl who have unlisted options can trade them at a premium without having to exercise them - very shonky deal - everyone should show their disapproval of this!!!
It will release 337 million unlisted options with an exercise price of 3.2c onto the market (approx 31% of our heads which are approx 1080 million).
Shareholders approved the issue of unlisted options, did not approve issue of listed options.
The point of unlisted options is so that they can only be converted by exercising and then selling on market - which means the money has to be found up front to exercise and hence more difficult to do.
My belief is that it will drop the share price as it will reduce demand for heads as ppl move to leverage of options.
I say again - it will flood market with amount of options at 31% of amount of heads.
I'm interested in other CLE shareholders' take on this?
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