that is an interesting point T4P, are the options treated like a fringe benefit and therefore require payment to the ATO now or is it treated like a capital investment ?? IE the directors pay tax on an extra 6c per share when and if they sell their shares.
These guys aren't on any great cash salaries from the company so unless they are personally well cashed up via other means that substantial tax bill you speak of would be somewhat of a burden to them.
If they have to pay up straight after this fin year, whether the company suceeds or not, would be red raging flag that mngmnt are expect big things soon just by the fact they accept this deal. I mean, who would want to pay 80k of tax on some ops if you thought they would all come to naught.
CVI Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
