arundpr, After you exercise LOMOB, you would also want to hold...

arundpr,

After you exercise LOMOB, you would also want to hold the subsequent LOM for longer than 12 months to get the 50% Capital Gains Tax (CGT) discount and only pay CGT on half of your gain (i.e. not sell the subsequent LOM shares before 30 April 2017)/

One would also expect that by holding long term, you are not only reducing your future CGT liability, but also most likely increasing you Captial Gain (Considering the long term potential of LOM).

It should also be noted that if you purchased LOMOB at $0.001 from expired LOMO ... and sell them before expiry (without exercising them) ... you will make a significant capital gain (say $0.12 less $0.001 cost base) on which will not be eligible to apply the 50% CGT Discount ... although you will be able to reduce this by any Capital Loss realised on expired LOMO.

The loss on the former expired LOMO will depend on your individual purchases of the LOMO options.

In my case, I purchased a fair few LOMO when the price was low and hence my loss on LOMO is nowhere near as significant as my unrealised Capital Gain on LOMOB (which I will be exercising ... and not selling).

I am not selling and will exercise all my LOMOB for the following reasons:
1. I am a true believer of LOM and its future potential;
2. Want to take advantage of LOMOB leveraging (can buy many more for the same amount of funds) for any potential upside before expiry ... which has already happened;
3. I do not want to pay significant CGT (in my case 49%) on 100% of the Capital Gain on my LOMOB ... I would potentially be losing half of the Capital Gain I will realise if I sold now!!!

GLTA "Long Term" H
GLTALTH

Zippy1