RE:RE:Sum you pretty much nailed itHawkII wrote: SoCal: I suggest you stick to bike-riding. Options bring zero $$$$ into the treasury now and for potentially 4 yrs when the options expire. If SPR wanted to top up treasury, they'd make an announcement of a raise and that mgmt's participating as a good signal to the street. But in this case they just awarded themselves 5.4M options for free when the stock is at 3yr lows and news is light. They dont even give out RSU's like other companies - whereby options get awarded as milestones are met. So unfortunate for shareholders ... at this rate there will be over 300mm shares outstanding.
SoCalcalm wrote: Good morning all. Sproutly probably needed some more cash, and this is all insider stuff that is under the reporting guidelines and all positive. They have been talking with some major players this I know and the ducks maybe starting to line up. The conspiracy theories the Stock Police always go with, well you can take with a grain of salt, that's all they do. Fedor don't even comment as you are done on this board but your Jekyll and Hyde personality won't stop you. Everyone long have a nice peaceful Sunday. SoCal
Wow twice now Hawk has posted a some what valid point. Despite trying to twist these points in his favour, they do start off with some accuracy.
Typically, this type of option that was granted is not to put money into $PR treasury. If they wanted to rejuvenate the treasury balances before next report, a raise with participation of management along with some hefty PR would have been the way to go. Typically. However, we do not have all of the details, as the options granted were held below 10% of the holders holdings. For this reason and as usual theme, we are left to speculate to some extent.
As previously posted, there are some current events pointing us in a particular direction. Perhaps, a raise is not needed at this time and a grant of options was more favourable to those awarded them than an RSU.
An RSU( Restricted Stock Unit) is usually a form of bonus or in lieu of salary and held for a period of time by the company at their discretion. An RSU is subject to Immediate taxation that year.
Although more risk averse due to the subjectivity of the company performance, Stock options can be nested for a period of time to be executed at higher share price and then eventually cashed out as taxable gains later. In Canada, it could be transferred directly to a TFSA for future tax free investment gains if you have ceiling($69,500 for 2020) or even to an RSP to defer the taxes all together until your withdrawal date for less taxation. Anyway you get the point. Although more risky, waiting it out with stock options could be very lucrative and worth the wait and taxes to some.
In this case, stock options were granted with 4yr nest. This indicates that they do not anticipate the company to go bankrupt within those four years. Not only that, but at $0.10, previous bank interest and last PR, I can safely “assume” that they are anticipating some growth within this time frame.
Oh, and these options are not awarded for free as Hawk stated. A company does not hand out shares without appropriate reasoning. $PR is not a charity. You can be certain that there was calculation behind the grant. One I am sure we will all learn of and enjoy soon enough.