Just looking at JKA I can see they get the money guaranteed from the options now, but they also issued more options exercisable at a higher price later. Seems the biggest winner are the brokers that get 6% of the cash and a 1 for 1 option. In the end they went back and raised cash anyway. Would of been better to raise capital via shares in the first place.
Price of their shares seems like it was almost pushed up to get near that option exercise price, then the shareholders were fleeced to put out more cash and now their share price has reverted back to a level before the options expiry. So they are down, but the brokers won didn't they.
It's all a bit dodgey to me, don't mind a few options but geez just seems like a way to fleece people. Anyway TPT have enough options issued anyway, would much rather them raise cash than options if they had to at least investors can concentrate on the company rather than these distractions of options in the mix.
TPT Price at posting:
21.0¢ Sentiment: Buy Disclosure: Held
