Yangarra Resources Ltd T.YGR

Options?

[margaritaman]

Management exercised approximately 2.6M options following the release of 2023 results. Exercise price of $1.11. What gives?

[Helloworld]

Would have much preferred to let options lapse and buy in market but this has to be viewed as good news. They believe at current market value they are buying hand over fist

[margaritaman]

At first blush, yes this would appear to be positive. Perhaps we'll results are making a material improvement. 

[fullyautomatic]

? Nothing gives.  They have an option to buy granted at $1.11. Doesn't mean they will. 

[margaritaman]

According to SEDI they did exercise options and purchased 2.6M shares at the strike price of $1.11. 

[kavern23]

It's a really good thing as excerise of those options that is like raising 2.9m dollars that can be put towards the debt.

[margaritaman]

Good point Kav. Never even considered that. Looked at more as a vote of confidence. 

[Helloworld]

Not just a vote of confidence. $3 million is a lot of money at market prices. I have to give kudos to management for this. Not a token buy this time.. maybe the sky isn't falling. 

[kavern23]

I don't think sky is falling. The success of the well stimulation and optimization program could be the driver going forward as it takes such much less capital and is effective. ygr likely wasn't adding 1k boe a day of new production from new wells in q3 and q4 yet ygr was able to still produce 11133 in q4. I think well stimulation really helped offset things.   The

[pennydredful]

Some  reasons  to  exercise  options:   a.  they  are   expiring  soon b.  The  difference  between the option price  and  the market price is taxable  as   ordinary  income  so  if  this  spread iv very  narrow little  tax   to pay.  c.   the