RE: No Milk Today !!!15 Oct 2020 14:39
dougie they are granting options to employees and others(see below) under the 2016 share option scheme.my maths may be off but it looks as though it's equivalent to about 3.4% of the current issued share capital. the options have an exercise price of $0.149hk and have the exercise conditions as set out in the announcement as to time scales etc. two points occur to me.first there are no performance criteria attached to the grant (certainly none are mentioned which i think means there aren't any). no surprise there ,so if the s/p improves they can buy the shares at the exercise price regardless of their own individual performances. second who has had the options for the approximate 37m shares not set out in the table? the directors can grant options under the scheme to parties other than pure employees, e.g. service providers ,which probably means pretty much anyone the bod choses, part of course from you and me and bignose, etc. what annoys me is that they don't say who has had them. why not ? is it because investors won't like it?. is it commercially sensitive? will we have details in next accounts? who knows. it gives the prospect of further dilution in effect if the S?P goes over the exercise price, although i suppose we could live with that if there was a decent increase, but its a small potential cap on s/p performance. overall relatively small beer if the company can put in a decent performance over the next few years, but its the usual big "if". thats my non expert take but happy to be corrected etc.