option clarificationWhen a company issues options to purchase shares, the shares come from treasury. When the options are exercised, the owner buys the shares from treasury at the option exercise price. The cash goes from the buyer to company. In many cases the buyer then has to sell the shaes in the open market if he does not have the required funds.
The company does get the cash direct into treasury, to use for general corporate purposes.
In this case GRA does get a bit over a million.
Not everyone has a million sitting around to exercise the options, and some are risk averse and do not want to overbalance their finances.
There is also often a window when directors can trade, and with the quarterly approaching he may have had no choice but to sell when he is allowed. Transactions like these are often executed as block trades, especially as GRA is so thinly traded.
There are many reasons to sell shares, only one reason to buy them. Still it is not an optimistic indication when a director sells the entire allotment of shares .
I think this increases the importance of full true and plain disclosure at the next quarterly release.
This company has some explaining to do, and I hope they put some effort into it.
Best of luck.