RE: on sedarIt means that many shares could be added to the the options pot.
Sirit is getting a little low on the amount of options they have available to grant, they cancelled 3m in 06' so they want to add to the pot to grease employee/managements palms.
They won't add to the total outstanding shares unless options are granted and exercised. This will mean the amounted of diluted shares will increase as they can be exercised at some point. The strike price of the options is key, as once they are exercised that provides the company with extra cash.
E.G. Existing OS shares now 145m + 7m options = 152 diluted. Add another 21.75m+152m=173.5 diluted. Still 145m outstanding, 173.5 diluted.
I'm inclined to vote NO, however when Sirit does take off how are they going to attract talent without paying them cash? We need to get more information from Sirit management around this whole issue of dilution. Like how many shares do they have available now for issuance of options?
John