1) Is that statement correct? --- If yes, why can't we continue to trade up until Tuesday the 30th June?
Answer : Yes and ASX/ASIC Ruling. Nothing to do with GDN.
Obviously, the share price is NOT going to hit 20+ cents within the next 7 days of trading so the options are not going to be in the money by the 22nd.
Answer: An asumption. Who knows what the SP will do before 22nd June.
IF and it's still a slim chance the share price does head north after the 22nd June that means options holders have a chance to convert and make some money...but as also mentioned on this forum 'who the hell has money to convert 1MIL+ options?'
Answer: Option holders call. Option holder should have been aware of ramifications and process when options were purchased. But if SP went to 40 cents why not go to your bank for a loan to exercise. You could exercise the options for shares, sell the shares, repay the bank and bank the profit. Could mean bankng $200,000 profit (if SP is 40 cents when selling) in a matter of weeks. Your call.
2)So, what other options are there if you don't have that kind of money? Can you sell them off market to someone or what other ways around this are there?
Answer: As per above (loan) or you could talk to a big mate who has the money, offer to sell them to him for a % of the profit.
Finally,
1) How does the converting process work? If on the 30th of June I do decide to exercise the options because the SP has headed North dramatically after the 22nd June what is the process of converting them to Ordinary Shares AND if it takes a few days to process, what's to say the share price doesn't DROP back below 20c while you are waiting?
Answer: Down load a form from the GDN website although you should have received paperwork in the mail when you acquired the options. Write a bank cheque to GDN for the amount of options you hold and wish to convert (20 cents per option) and post it to GDN before 30 June 2009. You will become the proud owner of GDN shares within about a week or so.
If shares drop back below 20 cents after acquisition - that's the market for you.
Hope the above helps. Why not pick up some shares at 8.5 cents and then you at least have some cheaper than 20 cents plus whatever you paid for the options.
GDN Price at posting:
8.5¢ Sentiment: Hold Disclosure: Held
