re: Ann: Prospectus for 1000 Shares and 1000 ...
so we are spending $10k in fees to make back $10 just so that the free options can be traded for a quick quid on the open market. I would have thought that a sophisticated investor would have been happy with the longterm potential of just owning a free option that they can exercise in the future when the price is high.
Isn't that the point of a soph inv. there longterm stability.
All this does is tells us that the free oppies will be flogged off so that the soph investors can free carry as soon as possible. This identifies that they dont have longterm confidence in RMG, but rather just see it as a good opportunity to get free stock once they get rid of options.
what was wrong with leaving them as off market free options, there value to a true soph investor would have still been the same.
From a management standpoint, it is a foolish decision. now investors will buy the cheaper option rather than commiting to the full share which would push the price up through supply-demand. Furthermore, the capital raised from exercising the option will come from on market investors, that could otherwise have spent the $ buy the heads on market and pushing the SP even further
i was born at night, but not last night
RMG Price at posting:
0.8¢ Sentiment: ST Buy Disclosure: Held
