1. Prior to 30 November, the company announces that the completed trials have failed to demonstrate any meaningful change to the existing standard of care and its having problems recruiting patients to its other trials. SP ends up below 2.6c and regardless of how much you paid for the options you won't exercise them.
2. Prior to 30 November, the company announces that the completed trials have demonstrably improved existing standard of care and its making great progress recruiting patients to its other trials. SP ends up well above 2.6c and you exercise the options.
3. No announcement is made prior to 30 November. At some stage prior to 30 November the option holder needs to make a decision about whether to exercise. If you had access to interim trial data and recruitment progress, it would improve your ability to assess whether the SP was likely to remain above the exercise price, and hence make your decision easier.
IMU management has access to this information, other option holders do not.
You're kidding yourself if you think that exercising options (or not) and trading shares makes a difference as to whether this information should be shared.
Possibly, Leslie exercising her options as early as she did was an effort to avoid being accused of making this decision based on information not available to other option holders. But it would be much safer to publish this sort of price-sensitive information more regularly (especially in the case of open trials), and for management to have a policy under which they refrain from trading (or exercising options) in certain windows before and after the announcements.
IMU Price at posting:
6.0¢ Sentiment: None Disclosure: Held
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