Metanor Resources MEAOD

RE: RE: 5 000 000 options

[JRaffles]

The issued shares and stock options issued to management, as recorded in the company accounts, are as follows :-

 

Accounts Year - June	Issued stock	Stock options	Option as % of Issued
2009	105m	4.8m	4.6%
2010	128m	7.3m	5.7%
2011	201m	7.7m	3.8%
Current 2011 +5m	300m	12.7m	4.2%

 

If Metanor had a PR department, it is likely that they would say …..

 

• Stock options had fallen from 4.6% of issued shares in 2009 to only 3.8% in 2011 and therefore there was a perception that directors did not have an interest in the success of the company.
• Therefore, in the interest of shareholders generally, directors issued 5m new options to themselves in order to demonstrate that directors are incentivised.
• Directors granted the options below recent stock trading prices since many of their other options are exercisable at near term non achievable prices and therefore not a true incentive to directors.

In contrast to directors maintaining their circa 5% stock option stake in the company, the 2009 shareholders equity has fallen from 100% to about 33%.