It seems that some are confused by the valuation of the SPP with an inclusion of share options. The following is in my opinion only and should not be taken as investment advise. The Options are included as a basis of 1/2 an option for every share purchased i.e. 1 option for every two shares. The most important thing with the options if the time line i.e. near 3 years convertible on 28th November 2022. The next important thing to take into account is will you be able to trade these options i.e. sell on market. The answer to that is "Possible quotation of New Options under Loan Conversion Offer and Related Parties Offer on ASX 27th March". IMO I believe there will be no problems with the listing of the options on the ASX! Valuation of options - there are numerous methods to value options, I myself would look first at the timeline and then at the companies potential of trading at or above the conversion price during that time. My expected amount above would be around the amount I would possible set as target eventual sell price over the three years i.e. if I expected the shares to be selling at 50 cents by February 2022 and the options during the time line happened to reach 25c I would be happy to sell. Current Valuation - This is strictly my opinion but I would expect the options to open trading at 25 to 30% of the share price at that time. If we take the lower 25% and AJM's shares were opened on 27th March at 13c the total value of your SPP 13c purchase would be 13c plus 1/2 13c x 25% = 14.6c. NATURALLY if the share price is higher or lower than 13c the gain or loss would vary.
AJM Price at posting:
13.8¢ Sentiment: Buy Disclosure: Held
