The most likely reason for the cessation of the securities in the context provided by FBR LTD includes:
1. **Expiry of Options or Performance Rights:**
- The document explicitly states that the securities ceased due to the "expiry of option or other convertible security without exercise or conversion." This means the holders did not exercise their rights to convert these options or performance rights into ordinary shares before the expiration date.
2. **Lack of Market Value or Incentive:**
- If the market value of the underlying shares is lower than the exercise price of the options, holders may choose not to exercise their options, leading to their expiration.
3. **Strategic Financial Decisions:**
- The company or the holders might decide not to convert or exercise options and performance rights for strategic reasons, such as financial restructuring, changes in business strategy, or other financial considerations.
4. **Employee Departure or Performance Conditions Not Met:**
- Often, performance rights are tied to employment conditions or performance milestones. If employees leave the company or if specific performance targets are not met, the rights might expire unexercised.
5. **Administrative or Regulatory Requirements:**
- Sometimes securities cease to exist due to administrative reasons or compliance with regulatory requirements that might necessitate the expiration of certain securities.
These reasons align with the cessation due to expiry without exercise or conversion as stated in the document.
