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North American Gem Inc V.NAG



TSXV:NAG - Post by User

Bullboard Posts
Post by Pauly79on Jun 21, 2006 10:50am
367 Views
Post# 11015536

Shareholder Meeting

Shareholder MeetingWill anyone on this board be attending? Have you all decided how you are (or how you have already voted) voting in respect of the outstanding items? I for one have a problem with the provision in the stock option plan that allows the granting of options with an exercise price at the closing price of the previous day's trading. Here's a hypothetical - - let's say the stock closes at 20 cents on Monday. Monday night after market, the company releases a NR announcing significant expansion of the resource estimate at Lousise Lake. Tuesday morning the stock opens at 75 cents and trades up to a dollar by the end of the day. During Tuesday, management can issue options with exercise prices of 20 cents even though there has been a material change and the price has significantly changed from the previous day's close. Basically, this seems like it could be used as a tool for management to time option granting immediately after material announcements in order to reap unjustified profits (since options should be used as an incentive). If anyone has any thoughts or comments, please feel free to reply.
Bullboard Posts