@Inkling the options are a funding strategy for the company to progress the investigator led AML trial and P2 cardio protect.
Race has fully funded cardio protect P1 AML and cardio protect trials so these shall progress uninterrupted.
The golden rule is never exercise options out of the money, so wait and see what the share price is by the exercise date.
This concept is challenged with the two stage piggy back options. If a shareholder believes the share price will be greater $1.25 exercise price in May 2026 then it almost compels them to exercise the options now irrespective of whether the $0.75 options close in the money or not.
There has been good take up early on ~120k ~140k per week so if this continues should fully find the trials.
The sooner the options are exercised the earlier the commitments and progress can be made on the company programs.
A few bits that I am considering:
1. I won’t know the value of the May 2026 options until then. If I do know exercise the June 2024 oppies then I lose the piggyback options and miss out.
2. Early exercise of options gets program commitments sooner rather than later.
3. What will be announced between now and the June option exercise date. Perhaps who is the investigator for the AML trial, RC220 delivery and surprise Ann’s.
4. Let’s not be fooled, if we don’t take up the oppies there will likely be an Insto or sophs who will as part of underwriting or separate CR all of which will dilute my holdings.
Seems like a no brainer to me, each to their own DYOR and get professional advice.
FYI - will be converting this week.
RAC Price at posting:
81.0¢ Sentiment: Buy Disclosure: Held
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