How do the professional and sophisticated investors, involved in...

How do the professional and sophisticated investors, involved in the current CR, view their investment thesis with SAS?  Short-term or longer term investment horizon? 

If these investors seek investment returns early, the share could drop again.  This group is typically well informed, skilled and have already pre-thought investment exit strategies.  In the short-term, the only way these investors can achieve an investment return is by discounting their free options.  Given the SP is around 0.03c or less, the discount on options will need to be significant.

To create an incentive, these investors will need to sell options at a discount.  The options at an exercise price of 0.05c will need to be offered at less than the CR price of 0.03c to generate sufficient on-market interest.  If these investors accept an options sell price of 0.02 on the market (ASX listed SAS options), they stand to make a  67% return (0.02c option discounted price / 0.03c CR share price * 100).   That's a significant return. 

An an example, if an investor provided $1M in the CR, they stand to make $1.67M through the sale of their SAS shares and free options (discounted to 0.02c each).  This assumes that they can sell their SAS shares at 0.03c.   But to off-load the shares faster, they may need to reduce price of SAS share to below current SP (close today 0.029c).   If they were prepared to sell SAS shares at 0.027c and options at 0.02c, they would achieve a sizable $1.5+M, (slightly more than 50% return).

The issue with discounting options is that it will create a gap between SP and option price.  Unfortunately, this gap will place pressure on the SP to reduce again to minimize any pricing imbalance.  So lets say the SP approximates 0.02c, nearing the options price, thus reducing any arbitrage advantage.  As a result, the SP and options price will be in (approximate) balance again.  However, for sophisticated investors, it will reduce any incentive for the general market to continue purchase their options. 

If investors still have SAS options, they will need to further discount them again.  If they drop the price from 0.02c to 0.015c, they will achieve a 50% return.  If they discount to 0.01, they will reach a 33% return.  The sophisticated investors still stand to achieve solid returns, even if they heavily discount their options. 

If sophisticated investors believe that SAS still has many headwinds (eg, future funding uncertainty or delays, technology and launch risks, first mover erosion, and revenue reduction and occurrence), they will want to secure their capital and achieve returns quickly.  A short-term exit strategy.  

The SAS free options are a vehicle to achieve returns quickly, but the share price will likely suffer further reduction.  However, if sophisticated investors believe that the current funding is the catalyst for SAS operationalisation and revenue generation, a longer investment horizon is likely to offer greater returns than short-term profiteering.   So, who are these sophisticated investors?