RE: Very good day today8 Oct 2020 22:42
I'm equally positive about AVCT going forward. However, playing devil's advocate, can I raise the following in response to some of your numbered points:
1. Surely the options were awarded some time ago, presumably when the shares were very much lower than they are today and the strike price also probably lower, so it is not neccessarily correct to say the service provider has chosen shares
instead of £3m.
2. How do we know that the service provider does not think that the price is as high as it is going to be and has exercised the option only so he/they can sell? Incidentally, I don't think this is the case, but would like to see empirical evidence to support retention. Otherwise, why cash in the options now?
3. Agreed, but that could be a positive or a negative (see point 2 above).
4. Noted. Good. I stress I am positive about Avacta's prospects and the short term share price.
5. See point 1 above. I don't think we can assume the service rendered was worth £3m, unless the options were only granted very recently.
Don't shoot me down in flames. I stress I am positive about the prospects for the company both short & long term, but would have liked some more clarity in the RNS. Can anyone shed any more light on this? (NB I have read the various threads on this topic during the day, but they have obfuscated rather than illuminated).