whats the catch??, page-6

The options you have are a freebie

They give give you the right (but not the obligation) to buy shares at some point in the future for the price mentioned.

In your case it would mean you have an option to buy 8,000 PXG at 20c anytime before 28 Feb 2012 and 8,000 PXG at 25c anytime before 30 Nov 2012.

Now what this means is that if the PXG share price is 30c or even higher then you can buy the PXG at 20c with the PXGO and 25c with the PXGOA making 5c and 10c in the process for nothing.

You convert the options (send the company a cheque) , the company sends you the shares and you just sell the shares.

If the PXG price is less than the exercise price - then they are worthless to you.

You can if you want trade the PXGO and PXGOA on market just like normal shares without having to convert them first.

In the case I mentioned PXG at 30c then the PXGO would sell for about 10c on market and the PXGOA for 5c.

If you do decide to exercise them just contact the company. There should be a form on their website but I cant see it.

Its an interesting strategy for PXG - assuming they get the SP up then it will drive in cash later when they need it without a separate cap raising.