Options are issued as part of Capital Raisings and usually to sweeten the pot when the macro environment at the time of raising is less than favourable, a long downtrend for instance.
The are issued to investment funds and sophisticated investors as part of the CR placement and also to shareholders in a Share Purchase Plan.
WBTOA were issued in the 28c CR after a long downtrend and for every share issued at 28c one free option was issued with a strike price(what is needed to pay to convert to shares) of 45c.
On listing with the share price at 28c WBTOA could be bought easily for 4-6c which allowed at 7x maximum amount of options to one share. For many long term investors this was an amazing opportunity even though it valued the options at 50c compared to 28c for a full share.
It allowed some holders with limited Capital to greatly increase there exposure at little extra risk.
Some options are not able to be listed like the one recently issued in another company I have invested in but many invested don't like these.
Options can be far more volatile to both the upside and downside as that are usually fewer of them than shares.
Weebit - 2021and beyond, page-9321
Add WBT (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$2.33 |
Change
-0.070(2.92%) |
Mkt cap ! $440.1M | |||
| Open | High | Low | Value | Volume |
| $2.39 | $2.39 | $2.30 | $1.157M | 496.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 3 | 19191 | $2.31 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.34 | 2874 | 1 |
View Market Depth
| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| WBT (ASX) Chart |