JB, these are interesting points you've raised. Initially I agreed with you, however I have discussed this with a couple of people who have been senior execs at publicly listed companies and am now of the opinion that $0.97 is actually a very fair price. Often these would be granted at minor premiums to the prevailing share price.
Brooke and Maher could probably walk into any biotech company and get paid whatever they want. But they chose Cynata, so we need to make sure they are well compensated and their interests are aligned with the company. They bring a wealth of experience in commercialisation and contacts in the industry that will be pivotal in executing our strategic plan of licensing our tech to big pharma.
People love to bag Ross, but objectively he has done a good job of creating a deep pipeline of indications for us to license or develop ourselves. I don't believe anyone has put forward a realistic person to replace him, so he is required to stay on board and unlock the company value through new licenses or running our own trials.
I will also suggest, however, that Wotton, Washer and Webse are not granted these options, as I'm not sold on the value they add to the company.
Ultimately, Cynata needs Brooke, Maher and MacDonald more than they need Cynata. If they were to leave, we would be in serious trouble.
CYP Price at posting:
80.5¢ Sentiment: Buy Disclosure: Held
(20min delay)