RE: RE: Insiders selling ?? Clarification whyHere's what has happened with regards to insiders. I should of asked first. It's all good.
cb
Directors are compensated largely through the grant of options. Adequate directors’ compensation is essential for any public company to attract and retain directors of quality who are able to protect and advance the interests of the company. They don’t devote the time and effort for free.
In the instances below, directors were granted options five years ago at a strike price of $1.96 which were due to expire on October 1. They exercised their options prior to expiry and, in some cases, sold shares to cover their exercise and/or tax costs. Had they not exercised the options they would have lapsed and they would have been deprived of the income to which they are entitled. It is fortunate that the options were sufficiently “in-the-money” to enable them to exercise prior to expiry. Bear in mind that they have seen no income from these options over the past five years.
Added benefits: the company receives the cash from the exercise of the options and our liquidity increased marginally.
Lastly, Mountain Province has a record of very modest option grants compared with other Canadian mining companies I’m associated with. The number of options granted to directors is not material in relation to our public float, but is essential to the recruitment and retention of qualified directors.
Specifically to your points: ensuring that our directors are adequately compensated is essential to promoting the interests of the Company. The exercise of these options and share sales on the part of directors will have no impact on investors’ views of the underlying value of Mountain Province.
I hope this clarifies the situation for you.
Patrick