I have just been through the option exercise with TPT whereby 40 mil options expired at the end of last month with a 16 cent strike price. An underwriting agreement was executed a couple of weeks before expiry when the sp was hovering around 19 to 20 cents. The underwriting agreement actually pushed the sp up to 21/22 cents on expiry so well in the money and only 1 mil options fell through to the underwriter.
The underwriter was paid 6% of the $6 mil plus raised.
Not bad if you can get it !
KDR Price at posting:
20.5¢ Sentiment: Buy Disclosure: Held
