Davisite, What do you mean by "doing this on market"? Do you...

Davisite,

What do you mean by "doing this on market"? Do you mean sell MUSOA options on market and buy MUS Shares on market. This will obviously reset CGT countdown.

If you exercise MUSOA options (i.e. pay the 3.5 cents exercise price now), then this in fact (strangely enough) also resets your 12 month CGT discount. The following then applies to the MUS shares purchased by exercising MUSOA:

MUS share cost base = Cost of original MUSOA options + 3.5 cents exercise price;
Purchase date of MUS shares = Date MUS shares issued / MUSOA options exercised (i.e. now), not original purchase date of MUSOA options.

I do not understand why you want to convert MUSOA options into MUS shares ... the MUSOA options have more leveraging (as more units held for the same cost) than the shares, and will both move "more or less" together.

Yes, MUSOA options do not entitle you to any capital raising share issues ... although I suspect none will be required moving forward.

P.S.- I am an accountant, qualified to advise ... own a significant number of MUSOA options and am not contemplating on converting them to MUS shares until 15 January 2020, or selling just before that date ... getting CGT 50% discount for the MUSOA options and buying MUS shares with proceeds on market.

Note:- Buying and selling MUSOA options are both CGT events, whilst exercising MUSOA options is not a CGT event (but resets the purchase date).

Hope this helps clarify and was not too long winded ... and once again, thanks for your post and insight regarding MUS, I definitely owe you some free accounting advice.

Zippy1