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HIO

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2.2¢ hawsons iron ltd

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That Fundamental Guy

926 Posts.

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13/04/22

18:12

Post #: 60838796
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Originally posted by That Fundamental Guy: ↑

@johntie - the LDA has two components.

One is the options to which you refer. LDA have options to purchase 71,500,000 shares at the option exercise price. The option exercise price was to be based on 125% of the 90 days VWAP two years after the options were granted, so sometime around December 2023. However, if the 90-day VWAP at the two-year anniversary of the issue of the options is at least $0.55, then $0.70. Therefore, the option exercise price will be set over the months of October, November and December 2023. But yes, that option exercise price is likely to be set at $0.70. Therefore, these shares won't be issued and offloaded anytime soon. The options have an expiry of four years - therefore they may not get issued to LDA for up to four years. I suspect LDA will do very well from those options - but remember the share price was around 12 cents at the time.

The other component is HIO can access up to $200M from LDA over the next four years. Shares are expected to be issued to LDA at a share price based on 90% of the 30 VWAP in the 30 days prior to HIO calling on the funding. As HIO still has cash in the bank, it will not call on this funding for some time.

Therefore, I don't expect LDA to get any shares to off load for some time.

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Sorry, just up on all the posts while researching and typing.

I agree that there is an inconsistency.

However, I think we can agree that the options won't be issued for some time.

HIO Price at posting: 52.5¢ Sentiment: Buy Disclosure: Held
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