If I were looking from my perspective (as opposed to the company's), I'd buy on market. The options are exercisable at 1.3c in around 12 months time. Importantly, the company can bring forward that date on announcement of $3mln contract. Arguably, that is not a large value contract and can happen anytime. The fact that they went to such detail shows that such contract is imminent. So why buy at 1.3c and be exposed to a call at another 1.3c in the near future when you can buy at 1.1c now.
Of course, the investor and the company perspectives are intertwined, because the more people buy on market the less the company will raise, which sort of diminishes the value of shares anyway.
I am just astounded that this company invests that much time in financial engineering, which comes with fees and dilution through those fees. I'd rather they focused on the core and raised money in simple ways.
BLG Price at posting:
1.1¢ Sentiment: None Disclosure: Held
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