The Share Purchase Plan of 1986 is wildly out of line with current practice and needs to be revised.
Some perspective is needed here.
I remember our first chemist E Walpole telling me in 2002 that a technology typically takes 10 years from concept to fruition and from that point of view options without a expiry date make sence for it would seem that we are now have reached the cusp of commercial reality.
Our Directors have kept the faith when many shareholders have simply exited.
As regards the exercise price I suggest your maths should be :- 4.4 X 95% = 4.18 cents all up.
Normally options are issued at a 10% premium to market price with an expiry date. That would make the strike price approx 4.8 cents.
For 2011 practical purposes I don't think the options should be refused because they are being obtained too cheap as the exercise differential is too small.
We are too late to use Sect 249P of the Corporations Act to propose a Resolution to go before the AGM. Any Resolution [the effect being to change the issue terms] must occur 2 months before the AGM.
I think that this years issue of options should go through to the keeper and we advise the Directors that it is time to revise the Share Purchase Plan in time for next years AGM.
The net effect of a sunset clause would be to eliminate APG time and I'm all for that !!
APG Price at posting:
4.4¢ Sentiment: LT Buy Disclosure: Held
