DW101 -The KIKOA exercise price is 0.4c. They can only be...

DW101 -

The KIKOA exercise price is 0.4c. They can only be exercised from 1 Jun 13 to 30 Jun 13 - in which case you pay 0.4c to receive the fully paid ordinary shares in KIK. Then on top of that you will receive another free option which has the same exercise price of 0.4c and the time to exercise is from 1 Jun 15 to 30 Jun 15 (ie. another 2 years from Jun 13).

In summary, KIKOA will give you plenty of leverage especially if the stock price of KIK goes up. For example, let's say in Jun 13 if KIK are trading at 0.6c, if you convert your KIKOA by paying the exercise price of 0.4c, you will get one KIK ordinary share (which would be worth 0.6c at that time). In this case, you will be up 0.2c on the KIK share, and more when you include the new free option which would be valued at least 0.2c (being in the money by 0.2c) plus some futher time value of about 2 years on the option.

Hope the above helps.