OTCPK:MEAOD - Post by User
Comment by
JRaffleson Jul 04, 2010 4:04pm
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Post# 17242129
RE: Insider trades.
RE: Insider trades.
The 2,575,000 share options granted to directors are options to directors to purchase shares at
.70. This is cash [above current market price] which will have to be paid to MTO's bank account before shares are issued to directors. Therefore, the only "gift" to directors, is the option to purchase shares at a premium of about 10c over the current market price. My recollection is that the shares options may be exercised over a 10 year period. Since there are good prospects that the share price could rise significantly over the next year or so, then the directors could have set the excersise price higher as a PR confidence measure. However, it is likely that, in this development phase, the directors are not drawing the salary from MTO, that they could be earning in a mature producing company and therefore the small premium to market price of the options may be justified.
When the 43-101 is published, the directors needto be incentivised to enhance th eshare price in order to achieve best value for all investor shareholders. The share options may therefore result in a good value for shareholders generally.