re: Ann: Prospectus for 1000 Shares and 1000 ...
so you agree with me, just breaking down what you were saying and explaining my position a little further
1. the options will be exercised (almost guaranteed)
2. Whether on or off market, if the options were in the money, they would be exercised - given this could take time to eventuate.
3. Ability to sell the options on market reduces the demand for heads as a cheaper option option is available - resulting in depessed SP.
4. While there is no real issue with rmgo quantity being sold now, once the SP rebounds, the options will flow - again reducing the supply/ demand for heads and slowing down the SP rate of increase.
5. The options were issued for free
6. Are already in the accounts of each purchasing investor
7. The options have the same exercise price whether on or off market and therefore make the company the exact same extra income - except that off market would not dilute the company further and would mean stability is with the soph investors (which is the reason we rewarded there stability and longterm investment with free options).
This move to list options on market does not benefit the company in any way other than to slightly broaden the client base to include more bargain hunters (once it trails by around the exercise price). As if the head isn't enough of a bargain.
I understand that it may have always been the intention to have them on market, that much is obvious.
My question is, what benefit do you see this 'off to on' market move bringing to the company that wasn't there when they were off market.
And if it isn't bringing something of worth to the company, then why do it?
RMG Price at posting:
0.8¢ Sentiment: Buy Disclosure: Held
