I had oxro at the time it was due to expire. As I understand, there is a reasonable cost involved to the company to extend the expiry of options, so when a decision is to be made, it needs to be worth the while.
OXRO expiry coincided unfortunately with a major slump in the markets, this had a detrimental effect on OXR and subsequently OXRO. As there were many, many options which would be worth alot to OXR in the future, they decided to kill two birds with one stone by extending their exercise date for 1.5c per share. This ensured the options were still alive, gave the company a bit more capital, and kept the investors onside, many of whom would still be keenly associated with the company.
OXR knew they were moving forward, more time was needed, and for all the above reasons, I believe wisely, they decided to do something for their shareholders, rather than issue a new release further down the track.
Generally, I have rarely seen options expiry extended, mainly I believe due to the cost, and when a share is languishing it is difficult to convince shaeholders to part with more money to keep options alive. The company certainly has to be on the rise and investors very confident of its future.
Cheers
OXR Price at posting:
0.0¢ Sentiment: None Disclosure: Not Held
