I agree, sounds reasonable.
The option exercise price at $1.50 is above the current SP, so it's reasonable for the shareholders, and the 3 year expiry gives a lot of opportunity for the one(s) that will receive these options to achieve a decent gain.
My guess is that it's for the new CEO and / or board members and management personnel.
Ann: Proposed issue of securities - LKE, page-10
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