RE:RE:RE:Stock Options Eric35 wrote: Neo Lithium Cancels Incentive Stock Options,if i understand well,every year they are giving option stock to be a way to pay director and employes but you cannot have more than 10% over the total over the outstanding shares. For sure they remove the highest one.
https://www.tsx.com/resource/en/438
Thanks Eric, interesting document.
My take on the cancellation is a bit different from some other ideas that have been posted.
I do believe that we are getting closer to a deal and the cancellation has something to do with that. Something like negotiating the little niceties for the incoming JV party.
The company will get new and important (knowledge/experience) employees in the JV, people who'll want options as well.
The combined number of rolling incentive options, prior to the cancellation, was 11.47 million shares, some 300K less than the 10% allowed. These 300K options will not be sufficient for the new people. Present employees still have rights to 8.5 million "cheap" shares and from present NLC, there are now, after cancellation, some 3.25 million for the new people.
In case we take 35% dillution, that would be another 4.1 million options, combined for the newbies 7.35 million options. I would like that.
After the financing has been arranged, we'll see LAC valuation after financing, which will increase to present LAC valuation when we get closer to production in 2023.
The $2.42 will be dead cheap on expiration day, when already in production.
The interesting part, for me, will be that dillution will not be higher than 40% max. of current sharecount for a total JV sharecount of 165million + 10% incentives.
Lot of text, just my opinion, which may be altogether wrong.
Have fun.