The quarterly has confirmed that the bonus and free options are to be issued if shareholders adopt the resolution to reconstruct the capital.
The link to the quarterly.
http://www.asx.com.au/asx/statistics/announcementSearch.do?method=searchByCode&releasedDuringCode=W&issuerCode=GDA
If the existing options are converted to take advantage of the post reconstruction one for 8 bonus shares and 1 for 5 free attaching options , it will raise approx'
gdaoa $1,199,650
gdaob $224,319
gdaoc $1,402,390
The quarterly stated the record date will be announced after the meeting which should boost the demand for shares and parity for the options. It also increases the chance of a premium for the options.
It would be reasonable to predict that the gdaob and gdaoc options will be exercised to take advantage of the bonus shares and free options as they are well and truely "in the money".
I will be converting all gdaob and gdaoc options I have for this reason.
The directors will be pretty keen to get the gdaoa options "in the money" to secure their conversion. There is $1.19 m in conversion cash in it for the company.
What do the directors have up their sleeve to announce to the market to get the gdaoa options over the line?
The gdaoa share price will have to be around 4.2c in the period prior to whenever the ex date is, for the gdaoa options to be exercised (which is 5c less the value of the bonus and free options).
I am reading the quarterly and will post my thoughts when I complete my review.
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