DOU's value?, page-14

Incorrect just because 300M shares are available on the market to be traded doesn't mean the escrow shares are not included into the MC

On the extract below which is from Andrew Taylor's initial director interest he owns 191.6M shares these shares are included in the MC even though they are escrowed. It just means he cannot sell these shares for 2 years after which time he can sell them should he choose to (not saying he will).

Further he also has some PR of a further 52.2M which would require some sort of criteria to be met, I haven't looked into it but it can be from anything from earning a certain amount of revenue, gaining certain amount of users, delivering x profit, have a SP or MC of x plus many more. This PR are not included in a MC until such time as they are issued as an ordinary share. E.g. if he gets 1/2 of the performance rights then ~26.1M shares would be added to his holding making his total holding ~217.7M shares.

Further at anytime he can choose to exercise his options by paying $0.04c (4 cents) per option which would then convert to an ordinary share, the money from this option would go to the company and he can exercise this anytime between now and up to expiry (4 years). These options are not included in the MC even though it would be silly for Andrew not to exercise them right now but same time he cannot sell these shares for 2 years - after which time he can sell them should he choose (see above).

The reason why Andrew wouldn't of converted his options as yet in my opinion is there isn't much point by converting the option he has technically made money on paper but he cannot sell and there isn't a point to hold the share as there isn't any dividends. Once one of these changes then or it gets closer to expiry and they are in the money (e.g. above 4c) then he will exercise and then it will be added to his holdings.



TLDR MC is based on the number of shares on issue which is 600M and not the available shares being 300M hence why the MC is double what some posters are thinking...