RE: Options Exceciseable Dec. 31st, 2010The reason they would do this is,
1. Say you are an insider and you were granted 50,000 shares at say .30 cents;
2. Once they become excercisable and the price is above the .35 cent range, let say .50 cents;
3. You as an insider now sell a good portion at .50 cents, lets say 20,000, your net proceeds of the sale net you 10,000 dollars;
4. With your net proceeds you now pay for you excercised remaining shares (remaining 30,000 shares at .30 =9,000 dollars).
5. Voila, you now have 30,000 shares that are free.
There is just one thing wrong with THIS, and THIS is where my blood starts to boil, You and I dont get them for free. Yet they keep diluting and lowering the financing price.
GET OVER THIS, STOP ISSUING MORE SHARES, UNLESS IT IS COMPLETELY NECESSARY.
Make people pay for them like the rest of us.