POET Technologies Inc. V.PTK

Options repricing

[lscfa]

Some of these 10 year options date back to 2017.  Holders had opportunities to exercise them in the money but didn't. Greedy SOBs wanted to defer paying taxes as long as possible. Now shareholders must pay for their lousy market timing.

[lscfa]

Correction: Some options issued 2016 and still unexercised 

[wintersun10]

Or they knew there was no upside...

[lscfa]

If options had been exercised when in the money (say 2021) the proceeds to the co. would have been $22M cdn and employees would have made money and paid some taxes. This would have avoided several recent financings.

[MISTERFB]

The trouble is that statements made  by the CEO led people to believe that significant news was just around the corner.  Rather than sell into a profit, people held on anticipating the stock would spike up at anytime which was a mistake.

[daytrader18939]

I agree with you MISTERFB

[lscfa]

Not logical. If employees are anticipating big developments they exercise options now to minimize the tax due (which is deemed employment income and = current price - exercise price) and hold the stock, not the options, for capital gains. 

[MISTERFB]

So you are saying if you think big developments are on the way and therefore share price appreciation,  then it's better to dump the options early before they go higher in order to reduce taxes ???..lol.  Profits on paper trump taxes owed. The exercise price is set no matter when they are exercised.  The only variable is at what price they get sold at and the taxes owed. 

[lscfa]

Do. More dd...     Exercise now  Exercise in 2 yrs Options  10000 10000 Market price 4 10 Exercise price $2.00 $2.00

[MISTERFB]

Cost base in the first column should be 4 not 2 .

[lscfa]

Corrected table...     Exercise now  Exercise in 2 yrs Options  10000 10000 Market price 4 10 Exercise price $2.00 $2.00

[MISTERFB]

And if such employees anticipate big developments and trade based on this knowledge, isn't this considered as insider information ????

[lscfa]

Hey, you are the one that proposed it.... "The trouble is that statements made  by the CEO led people to believe that significant news was just around the corner."  

[MISTERFB]

The reality was that those who exercised their options should have waited as they got screwed by the downturn in the share price plus may have missed out in the repricing of those options