CONTROL MORE SHARES!: Guessing on the Insiders....Because the SP is GOING MUCH MUCH HIGHER...its MOST plausible to me the insiders are simply selling their free trading stock in order to pick up/exercise all their options down at the lower strike prices such as 10cents etc THEN its the companys right to simply replace ALL those options at the current price of 92 cents.
so for example someone mentioned $475,000 buys 4,750,000 in 10 cent options(shares)...this is correct...the Insider simply slides that $475k over to the INT treasury and they get a "CERT" for the 4.7Mill shares....NOW the insider is free to sit on those "paid for" shares OR sell at their discretion and at todays closing price x92cents = $4,370,000...yup you just traded $475k for $4.3Mill worth!!!
NOW it is VERY much in the companies right to "replenish" the EXACT amount of options just exercised for that insider BUT they must be registered at the current price of 92cents...so now the insider has another 4.7million in options at the strike price of 92 cents...of which they are free to exercise once again ONLY when it makes sense as the share price goes higher.
so price just hit 92cents and lets say the price goes to 5bucks...
- step one sold the free trading 475,000 and exercising the right to the 4,750,000 in shares held at 10cents.
- stock goes to 5bucks those "paid for" 4,750,000 shares are now worth $23,750,000 AND don't forget the company replenished all those options for the insider back at 92 cents...insider simply cuts a check payable to INT for 4.7mil x 92 cents approx $4,324,000 to get those 4.7Mill in shares which is really worth x 5bucks = $23,750,000(minus the $4.3M just paid for them) ...so by 5 bucks the insider just turned $475,000 into approx $40million!!!!
this is EXACTLY why one should strive to be a director for such a company OR get in on private placements.