There are 236 million OXROA outstanding. For them to be...

There are 236 million OXROA outstanding. For them to be exercised by current optionholders, those people have to collectively come up with 59 million dollars.

Obviously, not all holders of OXROA have the ready cash, so they will either let them expire in September, or they will sell them beforehand.

Given that you get money (and possibly a tax write-off)if you sell them, and nothing if you don't, it makes good sense to sell them. So this puts pressure on the price of OXROA.

For OXROA to hold up under this pressure, there needs to be more people wanting to buy than sell. Since all the potential buyers out there understand the situation, it is likely they would wait, unless they thought OXR was about to go up, or the company released some very good news.

OXROA goes down so OXR goes down because of the potential arbitrage situation between the two.

The shares will most likely bottom out around 25 cents, with the options worthless. Peake Lands will exercise their half of the outstanding options according to the contract, and will be left holding 120 million OXR.

So what do they do with 120 million shares? They wait until the price goes up and then sell them, obviously.

And how do they get the price to go up, you ask? Well, you can bet every last cent you have that they will put out a bullish report on the prospects of OXR, valuing them at a significant premium to the then-current market price. Expect to see it around the end of September.