RE: Time for the SP to Move North11 Jan 2022 06:01
@MarkP1989
Hi, I’m actually pro the recent share options award and I will explain why: -
First off, they appointed John Doyle as the New CFO. If you research the guy, he is typically in situ for up to 2 years max before a company is sold. He has extensive positioning experience in my opinion. 4D do not pay excessive salaries, in fact in my opinion the salaries are very competitive. John would need options to make it worth his while and they act as a dam good incentive should they enter talks, and he would have a vested interest to secure the highest share price. I can’t prove it, but my gut feeling is that John is appointed to support preparing them for sale.
Secondly, in my considered opinion, once they issue the next readout the SP will fly. This is possibly the only chance to for Duncan to award shares at this lower price. Why make things difficult for yourself? Now, if it was my company after the work put in, suffering with the share price due to events outside my control despite the effort, I still say both the recent Blautix results and the Asthma results prove that BLPs work, frankly I would award myself the same. Why not.
Its not illegal and they won’t be the first Board to do the same. Rather this than massive increased salaries this is the better option. Now, some might think its greedy but its business. As I say, I genuinely want the BOD fully loaded with shares. They have a vested interest in the SP climbing.
Remember, Duncan does have skin in the game here. He has a massive chunk of his own finances invested, likewise Alex here. They invested over £1.4m of own money in the company shares at £1.10 and at least we know a deal will be done when the time comes. They will want a return on the shares for sure.
Finally, now let’s not forget that these options are at 53.6p. So, when they do come to buy under this scheme, they will only make a return on anything OVER this level. So, for John for example to take say £ 4m benefit after tax in the event of a takeover, he would need to secure a sale share price for the business close to £5 for that to occur. If its higher share price, he earns more.
I don’t think ANY shareholder would be complaining if tomorrow they announced that they had offers for the business over £5. In fact, some might consider Duncan and the BOD as hero’s, they won't care what the board make providing the deal is done and there is a decent shareholder return.
A handful of shareholders are only whinging at the moment because the share price is depressed, and they are out of pocket. Currently the BOD is also out of pocket, but these things take time and this situation will change shortly as I say once readouts are finalised.
Appreciate this doesn’t help those in at £10 a share for now, but it still might if a sale deal is ultimately completed north of that level – you never know. Lets See how events unfold
I really don't have any issues with the options or what the BOD make, I'm only interested i
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