ctpo - a perverse incentive?

So CTPO? Consolidation prospects and reasoning got me motivated got me motivated to write something I've been meaning to for a while.

I wonder whether Cottee and the board were really ever committed to getting the CTPO options in the money?

Here's my reasoning for my conjecture.:

1. CTPO will dilute Cottee's (Freeholds) shareholding in the company. Cottee's (freehold) options come into play after CTPO. Without doing the exact maths on it, you're talking over 10-20% dilution on Cottee's overall shareholding - assuming that CTPO and Freehold were both converted.
2. Cottee want institutionals in. Those that hold CTPO are people who showed faith in the company by participating in previous capital raisings. Whilst there are some institutionals who hold CTPO, and the odd trader, there were probably a lot of mums and dad investors (the CTP Army) in this. Why would Cottee want to beef up them up on the share register when his clear aim is to beef up instos.

Whilst Cottee talks about trying to get CTPO into the money, it will also probably be no shame for him if he doesn't get CTPO into the money. He'll argue that he didn't have long enough to do what he needed to do, in order to get them into the money, and he may be right...

So here's where I think the Freestone deal was misaligned - it should have aligned Cottee's KPIs (ie some of his options) to getting CTPO into the money. It dind't. And on top of that it actually provided a perverse incentive for him not to get CTPO into the money.

Now, I'm not suggesting that Cottee is deliberately not trying to get CTPO into the money, but merely stating the fact - there is a perverse incentive for him not to.

Moreover, getting CTPO into the money also goes against institutional investment into the company - more mum and dads would get in - and there would be less need to do a cap raising in the next 12 months - where institutions and brokers will get their fill.

This may be stating the bleeding obvious, but I'm not convinced the motivation is there to get CTPO into the money.I hope Cottee proves me wrong.