Big news for those thinking of exercising the options to get free shares in the new entity.
Based on management's preliminary estimates, the expected capital reduction in MAG shares after the distribution is expected to be $0.0278.
So, it looks as if the exercise price of the options will drop from $0.10 to approximately $0.0722 after 29 December 2020 to compensate option holders for not participating in the distribution.
Based on the current share price of $0.185 and assuming the share price does not drop after the distribution, then the options should currently be trading at $0.1128 without factoring in additional value for the time to pay factor. (11.28 + 7.22 = 18.5)
So currently the options are a steal!
Options MAGOA
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 (20min delay)
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Last
11.0¢ |
Change
0.000(0.00%) |
Mkt cap ! $41.98M | |||
| Open | High | Low | Value | Volume |
| 11.0¢ | 11.0¢ | 11.0¢ | $1.43K | 13K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 209593 | 10.5¢ |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| 11.5¢ | 113195 | 3 |
View Market Depth
| Last trade - 10.47am 29/04/2024 (20 minute delay) ? |
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Last
11.0¢ |
Change
0.000 ( 0.00 %) |
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| Open | High | Low | Volume | ||
| 11.5¢ | 11.5¢ | 11.0¢ | 12195 | ||
| Last updated 11.05am 29/04/2024 ? | |||||
| MAG (ASX) Chart |