RE:RE: Optionswaitingstill wrote: Exactly taal. A few important points here.
These are not "free" shares. They must pay 71c per share to exercise them. We can actually do the same if we bought on the open market. The difference is that they get to see the reaction BEFORE they buy. A BIG difference but it also means that they have to pay for the new shares. There are about 15mil options handed out at about 70c. If they get exercised, that will put about $10mil into CGX's coffers. Sure, it adds 15 million shares to the float but here is what I think is the most important point.
De Alba is no bum from my understanding. He is a Partner in Catalyst and Catalyst is "vicious" to put it diplomatically from what I have read and seen. These guys know how to operate and negotiate. Not sure if they have gone up against the likes of Exxon or equivalent but when you compare to what we had with Suresh by himself, we are in far better shape. But the best part (I think) is that De Alba now has access to 1.5mil shares which are essentially worthless right now given our SP. And he only will want to exercise them when our SP is far higher than 71c. I suspect this guy already has A LOT of cash so I doubt he is looking for 30% or even 100% return on his 71c shares. So his interests are aligned with our interests. If you are going to have someone of De Alba's ilk in the game, best that he is on your side and not playing one side against the other or for a third hidden side. I believe that this new position and subsequent options have put him squarely on our side. VERY EXCITING TIMES. I can't wait for the coming days and weeks. Let's hope he performs.
Oh, one more thing. Chedda posted how many options each person got and I stated that there were 4.5mil options unaccounted for but there were only 3.5 million. Miscalculation. Chedda thought De Alba was going to get an equal number to Suresh (4 million). But there were only 3.5 million left. Here is my guess. De Alba is not going to play second fiddle to Suresh. I am guessing that those 3.5 mil are going to go to De Alba along with this new 1.5 million (unless they are already allocated but why not state that before - still trying to find out where Chedda found that info). I think De Alba is going to want 5 million options. If so, all the better for us. Take the rest (as long as they don't create more). Maybe not the full 5 million but I would bet that he is going to have more than 1.5 million options by the time the JV is completed. Just a guess here. The more he aligns with us and the more incentive he has, the better.
Waitingstill, hep me understand this news release. Were the options granted to the Directors only. You said the options can be purchased on the open market at 0.71. That is the same price of the share price when the options were granted. Help me understand the benefit of an option that cost 0.71 cents as opposed to purchasing the shares at todays closing of 0.71.
The only advantage I can see here for the options is that present shareholders are not incentivized to sell shares at 0.71 making the shares not ready available on the open market. Perhaps this is the only advantage here.
I welcome any feed back from the CGX , OYL shareholders on this BB.
cheers,
WindyHill