The six months to 31 December 2018 for TAU were all about securing funding, reconstituting its capital base and positioning itself for rapid growth. Included in this were the $10m capital raising (24 September), conversion of convertible redeemable preference shares (12 December) and the issue of options with associated performance conditions. TAU has clear and transparent financial disclosure and is best practice in this regard. It has ~160 million shares on issue and 16.4 million options outstanding.
Pages 14 & 15 of its Interim Financial Report (28 February 2019) disclose precisely the options that have been issued, their attributes, and associated performance conditions. One can form one's own opinion, but it seems to me that the performance conditions of the options are very closely aligned with shareholders interests and that if all the options are issued, that shareholders should be satisfied and considerably more wealthy.
For example: "On 3 October 2018, employees were issued with 4,178,019 performance options. The options were issued for no consideration, have a vesting date of 30 June 2019, an exercise price of $0.29, a performance hurdle that $5 billion (passed through) and $4 billion (active) be on the Cashwerkz platform by 30 June 2019 and are exercisable on or before 30 June 2020." [Page 14.]
From my perspective this is a most satisfactory performance hurdle. It is ambitious and if achieved - it is not clear to me that it will be but I hope it is - will be great news for shareholders and should mean at that date Cashwerkz is cash breakeven or very close to that. This, I believe, will focus the minds and efforts of those employees who own those options.
The whole of the Interim Report in my view is a thorough and well presented document, which clearly shows the structural changes the company has undergone, its present position, the remuneration of directors and senior management [which is not exorbitant], and associated performance conditions of the options and all aspects of the company. It is absolutely clear what the situation of this company is and that is something that cannot be said about many small companies. In short, the company is well situated.
This stock is flying under the radar and the present share price is bang on the raising price of 6 months ago. If, for example, the above performance hurdle is met, it is difficult to imagine the share price will not be considerably higher (and the register is extremely tight!!).
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