Hi NB,Any extension of the oppies has to be approved by...

Hi NB,

Any extension of the oppies has to be approved by shareholders just like the OBJ extension. PNO shareholders are well within their rights to reject an extension as it dilutes their shareholdings. PNO's case is significantly different though as their oppies are significantly out of the money compared to OBJ's options which were way in the money. I don't think PNO shareholders would be too fussed in having the oppies extended though the company could require some extra premium to be paid and/or exercise price lifted slightly, just like OBJ.

Because the oppies were sold to sophs as a freebie, and the sophs made a ridiculously large profit, I don't think the company would be too fussed if the oppies expire worthless. Given the risk of oppies expiring worthless, I would personally prefer shares rather than oppies although the rewards with oppies are greater than shares if the company can get its act together in four months.