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GC obviously done a good job lol. Looks promising now guys. Here we go.
I'm reading that as lining their pockets unless I've missed something?
Have they got pounds and pence mixed up?
Have I got pounds and pence mixed up?
The options at 0.001 are a gift but it only works out at c.£20k after 1 year and c.£40k after 2 years - hardly big money for a CEO. At least with GC's and the other board member's other options, they have to add some value for us poor shareholders so that they can exercise their further options.
First year for GC
· 1,000,000 Options on the first anniversary of the Grant Date at a price of 0.05p per ordinary share;
· 2,000,000 Options on the first anniversary of the Grant Date at a price of 0.07p per ordinary share;
· 3,333,333 Options on the first anniversary of the Grant Date at a price of 0.10p per ordinary share.
Take todays share price that's 6,333,333 * .04 = £253,333.32
That's a quarter of a million bonus for staying a year , less the cost of paying for them but it's fractions of a penny .
And that's just one member of the board.
0.05p or £0.05?
Needs clarifying by the Company
Needs clarifying urgently. If it's 0.05p it is a massive give away of £50m shares not linked to any performance! This is almost 7% dilution for shareholders.
If the figures are £0.05 etc then it can be seen as a decent discount to hopefully substantially higher share price once progress has been made - and obviously incentive driven.
I very much doubt GC has had time to do a ‘decent job’. This is nothing but the board getting there noses in the trough for no layout. I’m holding merely because I see a profit in the future but it’s quite gut wrenching when this happens. It’s bordering on insulting to many pi’s.
Take note, this won’t be the last time the greedy feckers on the EML board go dipping.
Explains why the share price has gone down consistently over the last 4 days with £21,250,000 shares (if you add up all those taken on the grant date up) being taken as options for virtually nothing. Or am I reading it wrong?
Previously EML granted directors options in June 2018 in conjuction of the re-admission of EML to the LSE.
At that time all the options were granted with an exercise price of 3p.
"On 4 June 2018 and in conjunction with the business combination, the Placing and Re-Admission of theCompany to the London Stock Exchange, the Company granted the following share options all with an exercise price of 3 penceand a maximum life of five years from the date they were issued. The options vest in four equal portions on the date of grant, andon the 6, 12 and 18 month anniversaries."
This seems to support the notion that the ones issued today will be largely (except for some allocated to GC) have an exercise price of 5p, 6p , 7p and 10p.
He says hopefully. :-)
Sorry Slurms and Gents but the below is incorrect. An option is exactly that - it's an option. It gives the Director the option to buy shares at a set price on a set date. E.g. GC has the option to purchase 1mil shares in a year's time at 5p. If the share price at that point is 10p then great, he wins and we win. Who knows, he may not even sell them at that point if he's confident things are going well and either way there will be an RNS to notify the market. The point is that they don't get given the shares for free and get to sell them at market price!
This is the point i was making - the first set of options at 0.001P are a gift - unless the company folds, they will be valuable options but aren't exactly huge at c.20k after year 1.
The other options involve the Directors increasing the share price and therefore creating shareholder value in order to benefit.
They aren't the most stretching option ever granted let's be honest but it's not the doomsday / dilution / excessive pocket lining being suggested.
I hope so. It's makes a huge difference to how I feel about the company. If it is pence then I have no trouble with a small give away to Graham Clarke and a genuine incentive for the rest of the team (and hopefully decent profit once the share price is much higher due to their continued excellent work)
What concerns me is the options granted on the 1st August grant date at 0.06p and 0.10p if that was pence they would never have been taken up now at a price higher than 4p.
Luke the option is not at 5p it's at. 05p.
That's 100 times less.
painful
https://www.thestudentroom.co.uk/showthread.php?t=2911085
I think the RNS is wrong, and the option prices are 5p,7p and 10p. It would be a nonsense having some options at .5p. some at .7p and some at .1.p. Options are designed to be an incentive. Not a virtual outright gift. Agree EML should issue a clarificatory RNS to make people happy
Luke this line is copied from the RNS
"
1,000,000 Options on the first anniversary of the Grant Date at a price of 0.05p per ordinary share"
Please explain to me how that is 5p when it says. 0.05p
2,000,000 Options on the Grant Date at a price of 0.10p per ordinary share
If this was pence why would Phil Cleggett have any interest in taking it up? He could buy at 4p on the market?
If was pence how could the RNS be published so badly wrong. 0.05p would read to most people as a fraction of a pence, it should state £0.05 if that is the intention.
Wow is this going to be another SXX
Or worse unbelievable
Mr McKenzie my intention was not to be rude so apologies (again - the first time ever on a BB) it read that way. It's my understanding that it the price quoted represents the nominal value rather than the share capital of the company.
No worries Luke.
"If this was pence why would Phil Cleggett have any interest in taking it up? He could buy at 4p on the market?"
Trev, good question, in such a scenario it would depend on the expiry date of the option. If the share price is 15p in 6 months time and he has the option, its a winner.
"2,000,000 Options on the Grant Date at a price of 0.10p per ordinary share"
You wouldn't say 0.10p if you meant 1/10th of a penny. You'd say 0.1p...
Right? Well it's the straw I'm clutching to anyway.
When I went to school 0.1p and 0.10p were the same thing, except that the second one would come back with a red line through the second 0 and "Not necessary" written in the margin.
Either the sums in the RNS are parts of a penny, or the company in which we are invested doesn't know the difference between pennys and pounds, clarification is necessary, urgently.
I have telephoned St Brides Partners and await a return call.
I wonder whether this is just one of those many traditional ways that the financial services industry describe things that make no initiative sense. I did a random search for grant of options and here's another example: https://www.investegate.co.uk/empyrean-energy-plc/rns/grant-of-options-and-pdmr-notification/201909181128058197M/. Note the phrase "issue incentive options in respect of 2,500,000 ordinary shares of 0.2 pence in the Company". Later in the RNS it says "The exercise price of the Options is £0.125 per Ordinary Share". So the 0.2p is not the exercise price, it's something else but my knowledge isn't deep enough to know.
The EML RNS doesn't state the exercise price, so I don't think GC is getting £250,000 worth of shares for next to nothing. I think the 0.05p might have something to do with the nominal price of the share and maybe it's possible to work out the exercise price from this, I'll look into. Of course it would have helped if EML has stated the exercise price as
Empyrean did.
Corrective RNS just out, the option prices are in pounds not pence as originally stated that's a relief, not that I'm a fan of share options in any event. I firmly believe that directors should buy there own shares like the rest of us, and be paid bonuses in cash when objectives are reached, unfortunately the world thinks differently.
Thank goodness for that!
I thought it seemed out of character.
Thank you anybody that mithered them, it might seem trivial to some but it was very important to me.