Yes ToBo. They will have to pay more per share. But due to the...

Yes ToBo. They will have to pay more per share. But due to the free options attached, the higher vwap is , the greater discount and less dilutive.

If the vwap is 12 cents, they will have to pay (12*1.5)=18 cent per share for 83.33mil shares. If they exercise their options, they will pay 3cents per option for 83.33mil options. The total number of shares would be 166.67mil. The average cost would be (18 * 83.33+3*83.33)/(100+100) = 8.75 cents/share. That?s the discount of a whopping (12-8.75)/12 = 27% !

If you apply the same logic to the scenario where the vwap is 8 cents, NuCore will pay 12 cents per share for 125mil shares. The total number of shares is 250mil and the average cost is 7.5 cents/share. That?s the discount of (8-7.5)/8 = 6.25%.