Member Info for RichyRich1

Now I think I’m starting to understand the logic in these options. Either way employees are going or be quids in whether ex pat or Ecuadorean. There’s no way in hell the Sp is going to be at 60p in 3 years time (I hope!!) I don’t think SolGold will exist in 3 years and will have been bought out in entirety for how much no one knows but for a lot more than 60p I’d imagine. Even if it isn’t sold, the SolGold employees (they’re the ones that allow us to sit back and hammer away on our keyboards discussing the company without lifting a finger as such) should benefit from this once in a decade discovery and potentially one of the biggest finds ever!

Thought this was useful after a very quick Google! “Pay cash – you send $10,000 to the brokerage firm handling the options transaction and you receive 1,000 shares of Widget. You can keep the 1,000 shares or sell them” “Cashless exercise – You exercise your options and sell enough of the stock to cover the purchase price. The brokerage firm makes this happen simultaneously. You are left with 500 shares of Widget which you can either keep or sell” “Stock swap – You send in a certificate for 500 shares of Widget, which is equivalent to $10,000 at the current market price, and this is used to buy the 1,000 shares at $10.00 a share. You are left owning a total of 1,000 shares of Widget which you can either keep or sell” So there is a way employees can do a cashless exercise! Wasn’t doubting you Filthy just couldn’t get my head around it. I’d imagine that these options in 3 years time are going to make a lot of people wealthy if all goes to plan.

Filthy, I’m really confused with options! Thought we were done with discussing options when the last lot expired a couple weeks ago but here we go again! If you don’t already own shares in SolGold how can you exercise and sell when you don’t own any shares? I can understand if an employee had 100,000 shares bought at say 10p they could sell those shares at £1 (for example) and use the profit to exercise their options at 60p when the sp was at £1!? If they don’t own shares how can they profit from options?

I don’t have access to L2 but Buy orders and sell orders at a set price can be seen no? Ok so I want to put a stop loss on my holding at say a 10% loss. Say for example at 40p then set a stop loss at 36p. I’m pretty certain market makers can see these stop losses no?

So MM’s don’t go hunting for stop losses triggering them?

Hunting for stop losses for example. 2pm trade for 241,000 or so at 31.1p! That’s a pretty desperate seller accepting that when the bid was around 34.5p

Looks like it’s being walked down to me. Minimal volume, more buys than sells and still sp sinks. Let’s see where we’re at come the start of December.

Suppose that’s an option as well Schlemiel. I’m not happy about the options to be honest but I think there’s something going on to protect Ecuadorean employees just can’t get my head around how it helps!

IF and it’s a big IF, imagine BHP and Nick Mather were bashing out a takeover offer. A condition NM could insist upon as part of the deal is all outstanding options must be “cashed out”. If that were the case then the Ecuadorean employees would be quids in (as well as the directors hasten to add!!)

Say for example BHP bought out SolGold in entirety am I right in thinking one of three things could happen with the options? I’ve cut and pasted from an article I found yesterday below. “A vested option means you’ve earned the right to buy the shares. The new company could handle your vested options a few ways. One way is to cash out your options. The actual amount will depend on the exercise price of the options and the new price per share, but the effect will be the same: to liquidate your equity position. The new company could also assume the value of your vested options or substitute them with their own stock. Both ways should allow you to continue to hold equity options or opt to exercise. With unvested stock options, since you haven’t officially “earned” the value of your options yet, the acquiring company could potentially cancel the options. This typically happens for financial reasons or cultural – if the new company never offered equity to its employees before, they may not wish to change that now.” 1. Cash out the options. 2. Swap the options to BHP options. 3. Cancel the options on takeover. I’m sorry but the only way a Ecuadorean employee is going to benefit front these options when we consider their average salary is number 1! I would imagine someone earning $450 a month is never going to be in a position to benefit from option 2 above as they won’t be financially in a position to exercise their options at 60p a pop!

Up until now I’ve been delighted with the way the board have dealt with SolGold especially holding through dark days when the sp was down at 1.5p!! But the more I’ve been thinking about the options today the whole thing stinks and the board should be embarrassed at issuing these options. The sp has been as high as 45p recently and with BHP buying at that price almost everyone thought the sp should be based at or around 45p. To issue the ridiculous number of options at such a low strike price but more importantly with a three year exercise date is shocking!! As a share holder I’m not happy with this latest news at all.

What would have been great....if every employee from the Cascabel project living in the region were issued 10,000 shares each even with 400 employees that’s only 4,000,000 shares. They didn’t need to buy them just given as a token gesture. If SolGold hit the dizzy heights of £2 per share and every employee cashed in for £20,000 that’s a huge amount of money when the average national wage is only $450 a month!

Sorry Unic, my post wasn’t aimed at you just thinking out loud. Regardless still don’t see how any Ecuadorean employees will benefit from these options unless they currently hold shares in SolGold.

If the options are mainly for Ecuadorian staff how on earth are they going to afford to buy options at 60p especially if they don’t currently hold any SolGold shares? They won’t be able to sell any shares at a profit as they don’t own any to then buy the 60p options! It doesn’t add up or make sense when considering Ecuadorian employees.

Thought this was interesting in partly explaining what’s happens with options when a company is taken over. https://www.google.co.uk/amp/s/insights.darrowwealthmanagement.com/blog/asset-management/employee-stock-options-after-acquisition/%3fhs_amp=true

Oops, sorry yes it is. I live in Africa and with the clocks going back in the UK always confuses me!

Are the options still applicable if the company is bought out in entirety Addicknt? I’ve never experienced anything like this before so no idea how it works with a take over. If only Cascabel is bought at a hefty price and a special divi is paid to all share holders then that would put a lot of cash in people’s pockets to be able to buy their options at a later date? Just a thought

Anna Legge presenting 8:30am UK time. Unfortunately I can’t watched it but for those that can here’s the link to the webcast. Any new titbits from presentation would appreciate if they could be shared here. Thanks http://www.gowebcasting.com/conferences/2018/11/05/precious-metals-summit

In theory I’m not against issuing options especially if they are exercised if the price is well north of the strike price. Money needs to come from somewhere going forward (fully funded for 2019 now) so I’d imagine this time next year for needing more funds. If the options are exercised that’s a lot of cash in the coffers.

Anna Legge presenting tomorrow at the Precious Metals Summit. Webcast available by the look of things. Wonder if we’ll get anything new by then? http://www.gowebcasting.com/conferences/2018/11/05/precious-metals-summit/day/2