Phil,
You can't have it both ways.
You don't want your investment to shrink by issuing options with a strike price lower than the nta but you say it would be hard to move a large quantity of shares if you decided to sell.
An increase in liquidity is exactly what would occur if 1 for 1 options were issued & exercised. There would be twice as many shares on the market & fund managers & institutions would be attracted.
There are not too many silly investors out there who would buy ALF above nta at this stage. It is alright for Argo who has a long track record but ALF's is still being developed.
A doubling of the number of ALF shares means that Justin would have a larger cash base with which to work & would have greater flexibility in making investment decisions as well as taking larger positions in companies.
Once the capital base has doubled a new buyback could be employed as long as the share price is in discount to the nta.
It will not be long before the share price is above the current nta which makes ALF a very good investment.
Cheers,
Bob
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