Ann: Results of Retail Component of Entitlement Offer, page-62

Just to clarify, if LNY does a 40:1 consolidation, the exercise price (currently 0.8¢) of options is also consolidated on the same basis.

So if the share price is at 0.5¢ at consolidation, the new (post-consolidation) price will be $0.20. The exercise price of LNYOA will go from 0.8¢ to $0.32 (if the consolidation occurs before the options expire).

So the options are very high risk, because they are currently well out of the money, and have such a short expiry time. On the other hand, with that risk also comes potential reward. E.g. if you buy LNYOA for 0.1¢ now and the LNY price increases just a few pips in the next few months, you might be able to sell them for 0.2¢… Each pip above that, you’d theoretically tack on an extra bag.

This is highly unlikely, but doesn’t seem completely outrageous to me considering the current market cap is only $30 million, and we are about to complete the acquisition of Georgetown mill for about $16 mill. Once again, super high risk due to the short expiry date.