RE: Don't miss out10 Nov 2019 16:06
the bad bat sorry but I'm struggling to see the logic behind that suggestion.i cannot see the point in granting options and then taking steps to prevent their exercise.also i do not think that evrh have the ability to influence their s/p in that way.i assume they have a business plan and marketing strategy which they hope over time will increase the s/p and that they proceed with that strategy regardless of the existence of options.if they don't want the money then they will be the first company on aim to pass up the chance of additional finance imo.i do, however, think that the gore options are something of an enigma.massive disconnect between the exercise price and the s/p when granted and the time available to achieve it.to my mind there are 3 main possibilities.1/they were ridiculously optimistic when granting them and saw no real prospect of them being exercised.possible but unlikely imo as why bother.2/it was a cynical attempt to raise the s/p by creating unrealistic expectations.again possible but unlikely.what would be the point.short term spike to sell into perhaps but not a convincing explanation.3/they had some realistic expectation that the exercise price might be acheved based on their knowledge of the events likey to unfold over the remainder of the year.this for me is the most likely explanation.that said i do not expect the s/p to reach the putative exercise price in practice but i am expecting events to unfold which will move it significantly higher than at present.i also think its is possible that the option terms will be amended as another poster has suggested,which would not necessarily have any negative connotations and could be quite positive.all just my opinion of course