Saw some posts about options under the quarterly and thought it...

Saw some posts about options under the quarterly and thought it should have its own thread.
You can read more about company options at https://rosser.com.au/option_notes.htm

BSA share price is well above 80c so it's likely that most of the options will get exercised.
As at 31-Jan, there were roughly 15M BSAO and 75M BSA shares on issue.
Despite a few folks exercising early, the big rush will come either in April, just before expiry. Could be sooner if there is a dividend announced, since option holders don't get dividends.

For all you aspiring analysts out there, BSA will receive $12M for option expiry and the SOI will increase to ~90M shares. If there are 15M more shares and only $12M more on the balance sheet, that means each share is worth a bit less. If you do the calculation, it would be about 4c less, but that may already be factored in. If you are using a metric like EV/EBITDA, you'd subtract the $12M (and any other cash) from the MC to get the EV anyway.

Given that BSA don't need the cash (they had $2M at Dec-31 and will likely make ~$5M from operations by the end of April), they could pay it all out as franked dividends. (I think. I'm not a tax expert). The franking credits would more than make up for the dilution. At the end of FY24 there were $11.4M franking credits available. Plenty. Alternatively, they could invest some cash in growing the business AND set a payout ratio of 100% of NPAT. Thoughts?