Hi Petere, I am not sure how you can say a 23 cents per share with a free option attached is effectively 31.5 cents. It is in fact, 23 cents for the share plus the free option, which gives, in this case, the purchaser the option to by an additional share at 40 cents anytime within the next 5 years for 40 cents. The raise was better than what we believe the farm-in option was, but it was still over generous and gave the sophisticated investors the opportunity to sell there share for anything up to 30 cents and retain the free option. This drove the share price down and it ultimately settled around 10.5 cents after a bit of panic.
Option holders can sit on these options for up to five years. There is no incentive to excise them before this time, although some might. So most of the funds from excising the options will not be available for some time and will not fund the upcoming drill program.
All shareholders now have the right to vote on about half these options and it does not benefit the shareholders who did not have the chance to purchase these options. If the drilling is successful, INZ would be able to raise money for further testing at a far higher price, but the money from the options will still be largely unavailable. If the drilling is unsuccessful, then the options will be "out of the money" and IVZ will still need to raise money, but at a much lower price.
So if you missed out on getting the options Vote NO to them.
IVZ Price at posting:
33.5¢ Sentiment: Buy Disclosure: Held
