When these options were issued, the price of the stock was around the 60c mark and everyone was hi-fiveing everyone else on the $1 party etc. From memory it was raised about snouts in the trough etc, but the general feeling was for rewarding good performance, from the past up to that time.
Here we are 6 months down the track, and the SP is a few cents below what it was then but MC higher because of dilution, especially the MIN shares.
I would expect the last thing Ken B. would want is further dilution as this could bring the price of the shares back further, and render the value of 40c options as not much.
As the notice of meeting for the 38m 40c options was on the 16th of March, the SP at the time was just below the 40c level, so by voting time, at 60c, everyone seemed quite happy on these forums.
Here is the explantion....
(b) The number of Incentive Options to be granted Messrs Biddle, Leibowitz, Adamson, Young and Brinsden (or their respective nominees, as applicable) is as follows: 10 Recipient (or nominee) Incentive Options Mr Biddle 8,000,000 Mr Leibowitz 8,000,000 Mr Adamson 2,000,000 Mr Young 5,000,000 Mr Brinsden 15,000,000 (c) The Company will issue the Incentive Options no later than one month after the date of the Meeting or such longer period of time as ASX allows.
Total of 38m 40c options, no other 40 c options listed in the 3b announcements.
Then on 16th May this appears on a 3b.....
"Pilbara Minerals Limited (ASX
LS) (“the Company”) has today allotted 23,000,000 unlisted fully vested options to directors or their nominees in accordance with approval granted by shareholders at the General Meeting of the Company held on 18 April 2016. The options have an expiry date of 16 May 2018, with a strike price of $0.40 per option. In addition, the Company has also issued 15,000,000 unlisted and unvested incentive options to Managing Director and CEO, Mr Ken Brinsden in accordance with approval granted by shareholders at the General Meeting of the Company held on 18 April 2016. The incentive options have an expiry date of 16 May 2019, with a strike price of $0.40 per option and will vest in three equal tranches upon the occurrence of the following: Tranche Milestone 1 Delivery of a final definitive feasibility study, to a standard acceptable to the Board. 2 The funding required to develop the Pilgangoora Project has been raised or procured based on parameters acceptable to the Board of Pilbara Minerals and a 'decision to mine' has been made by the Board in respect of the Pilgangoora Project. 3 The Pilgangoora Project mine development and plant construction is largely complete (both for civil works and mine establishment) and the process plant having achieved a nominal 85% of its design throughput capacity during production runs, at a saleable product specification. Following approval by shareholders of the terms of an Employee Share Option Plan at the General Meeting held on 18 April 2016, the Board has agreed to allot unlisted options for employees and consultants to the Company in recognition of their significant past contributions to the Company as well as an incentive to the successful development and commissioning of the Pilgangoora Lithium project. For long-standing employees and consultants, the terms of the options are the same as those issued to the Board and CEO as approved at the General Meeting.
OK as approved at the general meeting where 38M options were approved, but suddenly in the number of options on 16th May announcement is the following......
"1 +Class of +securities issued or to be issued Unlisted Options 2 Number of +securities issued or to be issued (if known) or maximum number which may be issued 1. 37,500,000 2. 800,000 3. 7,000,000 4. 31,500,000 3 Principal terms of the +securities (e.g. if options, exercise price and expiry date; if partly paid +securities, the amount outstanding and due dates for payment; if +convertible securities, the conversion price and dates for conversion) 1. Unlisted fully vested options with an expiry date of 16 May 2018 with a strike price of $0.40. 2. Unlisted unvested options with an expiry date of 16 May 2018 with a strike price of $0.40. 3. Unlisted fully vested options with an expiry date of 16 May 2018 with a strike price of $0.65 4. Unlisted unvested options with an expiry date of 16 May 2019 with a strike price of $0.40.
That is a total of 84M options
@brisen what's going on???
There seems to be suddenly 46M options that have appeared out of nowhere we are being asked to ratify. That is 5% of the company. Can someone please explain the discrepancy and who these options are going to??
I very well could be wrong, but only 38M shares were voted on in April, but 84M turned up on the books in May but were never ratified by shareholders, which we are being asked to do now.
(20min delay)