Okay so I did a bit more digging to try and estimate what these options may be worth. Again, please correct any errors.
Assuming current interest rates are 5% and volatility of ~55%, using a Black-Scholes option price calculator I get a value of ~$10 per option.
So that equates to the current options package being worth approx $7mil.
Given options have been granted in the past and will likely be granted in the future I do have an issue with the magnitude of this grant.
I've said previously that excessive dilution is one of my major concerns with the company at present. I'd much rather these options were tied to clear milestones and that existing holders had some level of assurance that we will not be excessively diluted in the future. Maybe time to offer the sweetheart deals with free options to all holders? (not just sophisticated/wholesale investors)
AVR Price at posting:
$20.65 Sentiment: Buy Disclosure: Held
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