Ann: Option Exercise and Cleansing Notice, page-3

This option conversion notice is interesting.

From the annual report there are a heap of listed 0.15c exercisable options. Most of this conversion notice however related to 20c unlisted options, with a small bit being the 15c options.

The 20c unlisted options were only issued to Taylor Collison Limited as part of the August capital raise (From notes to the Annual Report). Taylor Collison Ltd has until 10 August 2023 to convert these shares but has decided its a good idea to pay ESS $210k now to convert over half of them now. As an investment firm they will understand the time value of money around option valuation very well. Why are they choosing to spend $210k now to gain 1.05m shares rather than waiting 18 months and spending $210k to gain the same 1.05m shares?

There would appear to to be two main options:

• Are they converting them just to off-load the shares and take a profit knowing ESS is their client and will probably ask what they are doing
• Are they want to hold the head shares so if a rights issue or similar entitlement is announced, they hold head shares at the entitlement date

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