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4.2¢ magnis energy technologies ltd

According to Black-Scholes calculator those 40 cent options...

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TomTOm49

585 Posts.

78

03/08/21

15:16

Post #: 54996395
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Originally posted by SteveSage: ↑

well if you ignore the ~30% cost of the loan (as mentioned ~6.2m for a 21m loan over 18 mths), by issuing millions in options, you are limiting the upside for shareholders.

yes it may be out of the money options, but these are still worth something (I'm sure the accountants can value these) and they have paid these options over and above the $6.2m they paid.......would you take 10m options at a strike price of 40c that expires in 3yrs time......I certainly would.

I'm trying to point out that this hardly seems like a keen investor ready to jump onto the MNS/IM3NY story.....all the economics scream desperation. There are multiple get out of jail options for the investors should the MC fall, should the shares get suspended for 4 days, further debt (so only equity issuance allowed) etc etc.....the investors have protected themselves from all the downside, and look to benefit from any upside too.......existing shareholders don't get that same deal

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According to Black-Scholes calculator those 40 cent options should be worth 16.4c right now. Add that to the ludicrous loan

MNS Price at posting: 28.5¢ Sentiment: None Disclosure: Not Held
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