This is a very valid point and one I had not considered before....

This is a very valid point and one I had not considered before. I have nothing against performance rights as long as the number is reasonable relative to the number of shares on issue and the hurdles are set in the best interest of shareholders.

The company has 79 million shares on issue and has recently issued 6 million performance rights to the chairman and varied the terms of the CEO’s 10 million performance rights to insert a share price hurdle vesting criteria. This was approved at the AGM dated 29 November 2017.

The above-mentioned performance rights represent over 20% of the current share capital.
All these 16 million performance rights have vesting conditions including share price hurdles ($0.20, $0.40, and $0.60).

Based on the vesting conditions, the performance rights have vested and could be exercised and converted into shares. I am not sure why this hasn’t happened yet.

IMO the announcements regarding the Fitocracy agreement, term sheet with Ravi Krishnan, and the two research reports announced by the company directly contributed to the increase in the share price to over $1.60.

The research reports commissioned and paid by the company contained material errors and were retracted. The company was also required by the ASX to provide further information on the agreement with Fitocracy, including its statement about annual revenue of U$ 9 million.

The share price collapsed and is now down to $046. Nonetheless, the 16 million performance rights have vested due to the share price hurdles.

I wonder when the shares will be issued...