Race options thread, page-268

The major reason for exercising the options early is doing so will help make your shares more valuable in the medium-to-long term. Having enough cash to undertake some of the high priority activities we have planned increases the probability that the SP will be well above the break even point come June next year, as well as help build long term value. The money that has come in already had allowed us to green light a couple of projects that would not have started until next June without the new money.

One subtle thing early conversion does is send a signal to any potential acquirer of RAC of how future thinking the shareholders are. The more shareholders are thinking of the long term value of RAC over the short term, the harder it is to make a predatory raid. If you think RAC is worth 100x the current SP you are much less likely to sell out for a lowball bid than if you think the market has got the price of RAC correct.