I see people posting as though this is a confirmation of great things, but I don't particularly get it.
By my calculations, the director made the decision wherein he was effectively paid $121000 to take an additional 9000000 shares. Where is the downside to doing this regardless of what the share price is going to do in the future?
Sold 4000000 @ ~ $0.2579 = ~$1031600 to buy 13000000 @ ~$0.07 = ~$910000
If the options weren't exercised relatively soon, they would become worthless at the end of the year.
By exercising, if the SP was to drop, he would still be up $121000 and 9M shares, if the share price was to rise he would have an additional 9M shares to reap benefits from, so it's win/win. Even if the SP was to drop to 7 cents or below, he would still be up ~<$471000 than if he did not exercise them.
Don't get me wrong, I'm not saying this is a negative for the company, but it seems a no-brainer to me and doesn't really reflect much at all on confidence in the company, short of him being a smart individual.
Is there something I am missing here?
ADO Price at posting:
25.5¢ Sentiment: None Disclosure: Not Held
