KRCOA (KRC Options), page-23

yes, and no.

The options will cost 10c to covert... there was the initial cost of the option (which for some holders was very, very low)... so a lot may be converted at just over the 10c mark... 10.5c is prob enough really.

In truth, even if the SP hits 12c (or 13c or 14c) over the next month or two... the important thing is that the SP stays above the 10c (ish) mark around the time the options actually expire..

Most people don't convert the options to shares until just prior to expiration (why would they ?)... so they won't simply convert because the shares hit 10c.

How many people would convert if they hold 1,000,000 options and the SP is sitting @ 10c ? not many I suspect... they can simply buy their shares for 10c instead of converting.. however if the shares are 10.5c... well they could pay 10c for 1,000,000 shares ($100,000 ) or convert the options rather than let them expire worthless for $95,000)... most would convert as trying to sell the options that close to expiry with 10.5c SP is not going to get them much at all.

My hope is that we hit 11 c a couple of weeks prior to the end of june.. .and stay up @ that price.

Why ?

According to the recent 3B ann... there are 124,410,168 of those 10c options still around. The number of shares on issue are 1,170,478,933... so the dilution of the shares should all of these options be converted is aprox 10%... however the cash raised (12.4 Million) is 15.5% increase in our Market Cap... so the net effect, in theory is quite positive.

It is quite possible that the SP would rise post expiration of those options if they were all converted... naturally, the market may disagree with my logic :c)