Options17 May 2019 20:05
Interest thoughts from part of a post by "Sharenotes" on ADVFN:
I always look at the shares and options held by the directors. Take John Peters, for example. He holds over 50M ordinary shares, but has a relatively near term option (expiry date of 30/6/2020) to pick up another 36M shares at an exercise price of 2.75p. The vesting price however, is 5.5p. Accordingly, if this option were to be exercised then he would gain just under £1M. The challenge for him is to get the SP to 5.5p (note the 50M shares already held would then be worth £2.75M). Also note that Alan Broome and Peter Wale have a similar option that, if exercised, would furnish them with a further 24M shares a piece. Indeed, it would be transformative for Broome. Simply by looking at the numbers involved, there seems to be enough incentive to drive the SP up.
We might get a clue as to how the board is thinking by which means they cover the end of month A$2M payment. If they take a route that undermines the SP, then the options may just be a ‘front.’ I will be watching with some interest as to how this unfolds in the next couple of weeks.