Fair value of options today1 May 2021 11:02
Here's a site which you can use:
https://www.mystockoptions.com/black-scholes.cfm
Estimates will vary but mine is between 10 and 17p per option, which equates to a bonus of between £170-300k per director, let's call it £250k
There are many ways this could have been "awarded". The way I see it they could have awarded the £250k * 4 = £1m today to themselves which would likely have involved raising £1m on the market, possibly at a discount to the 23.75p, and most likley caused a shareholder uproar. An option which would have been in the favour of the shareholders would have been for them to wait until the deal completes and we hopefully head north of £1 and then award the £1m to themselves, though they could probably have gotten away with doubling that or more at that point.
The play they have gone for appears to be a win-win for shareholders and the BoD: issue 1.8m options to each director in the knowledge they may not get a chance to exercise them for some time, or ever if Amapa falls through, but should it not, it would mean that their £1m of fair value today would likely be worth multiples of this to them, and when they exercise it would raise 29p * 1.8m * 4 = £2m for our coffers. No doubt they considered implementing escalating options to send a good signal to the shareholders, but instead chose the simpler option of a single value (29p) but at a 22% premium, rather than at market or below which is the norm. Although I would have preferred escalating options, I'm OK with this.
Incidentally, the next DEV ship appears to have got married and is now due in sooner. ;-)
Ob.
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