I agree, you cannot extend an existing option from a legal perspective. But you can offer a rights issue to past holders (and all shareholders for that matter)for a new replacement option series, recent examples include EVG, MPJ and Pelican Resources. There are probably lots more companies out there doing the same thing, I was just aware of these ones.
I am just annoyed as I paid for my shares and I paid for my options. I just don't think the option holders were given a fair deal in the process with the 12 month suspension of the company. Most shareholders hold both options and shares.
I just think it is an opportunity lost for the company, as it sends a bad message to me as a shareholder, that I have brought options in the company (which spent most of their life in suspension).
People would probably take a different view of the company if they offerred a replacement option (as part of a new series) to shareholders and optionholders, and they would probably say to themselves, yeah these guys are honourable and do the right thing, I am happy to back them as they are fair and reasonable in their dealings. That is how a loyal shareholder base is built.
GBM Price at posting:
3.7¢ Sentiment: None Disclosure: Held
