Current issued and outstanding stock optionsBased on the September 30, 2020 Q3 report and information from the 2020 Annual Report, Verde
has seen fit to award 3,236,826 options with a weighted average strike price of $0.59 which if exercised over the next 10 years will generate $1,908,802 in additional capital for the Company.
At the current stock price of $1.11, this would reward the present option holders with a realized gain of $1,684,035. Very nice no risk no cost guaranteed return for those who have been able to participate in this plan.
If the NPK share price is at $10 in 2024, the earliest expiry year for the current options, the realized gain would have risen to $30,459,418. An even nicer no risk no cost guaranteed return, and one that the option holders can patiently sit on while awaiting for the price appreciation to occur. The average weighted life of the current options is over 7 years.
I would be interested in hearing what other shareholders feel about continuing to award options priced significantly below the true value of the ordinary shares which remain in play for the next ten years, at a time when we are forecasting a rapid run up in the current share price to more realistic levels.
Would other shareholders support a moratorium on Verde issuing any additional stock options given this unusual (but in fact most welcome) circumstance for or common share investment?
Looking forward to your posts.
Cheers,
S.