options are not used as a general rule to raise money, although there could be loyalty options and other options.
Rather given out as an incentive to take up an entitlement issue with a free attached option, which could be dated usually between 1 to 4 years, they are attractive to investors who take up the entitlement, which is what the company wants, as they are usually freely traded on the market at a premium as they cost nothing.
Options are finite and by their nature ara not used for capital, raising as they are potentially dangerous ,long-term plans of the company, are not realised. it depends on when they are raised. Also, if in boom times, they start their life it’s very unlikely that these options will be exercised unless the company is performing extremely well.
PTX Price at posting:
13.0¢ Sentiment: Buy Disclosure: Held
