This shouldn't stop the price going above the 7.5 cent exercise price!! There are 4,513,986,260 options on issue which would only add 50% to the number of shares on issue. If all options were exercised at the price of 7.5 cents this would raise another $338 million for the company so the dilution is really only the difference between share price and exercise price divided by total number of shares.
ie there would be 13 509 786 260 shares on issue if all options exercised
assuming that SP was 10 cents at the time of the exercise date = market cap of $899 million
add the $338 million to the market cap
and then divide by total number of shares on issue
Result $1.237 billion divided by 13 509 786 260 shares would give you a 9.15 cents per share value so effective dilution would be less than 10% not half....
Happy investing folks....
AGO Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
