RE:RE:RE:2.8M New Options Granted This is the press release that can be found on sedar
And the date and time so you can find it.
Mar 5 2021 12:24:21 ET
American Creek also today announced that it has granted 6,300,000 incentive stock options under the Corporation’s stock option plan to certain Directors, Officers and contractors of the Corporation. The options were granted at a deemed price of $0.32 and are exercisable until March 4, 2031. The incentive options are subject to a hold period of four months and a day from issuance.
Also you need to look at this as well to get the big picture.
Nov 5 2020 22:30:15 ET
This is found on page 43
Description of the American Creek Stock Option Plan The following is a summary of the substantive terms of the American Creek Stock Option Plan: The American Creek Stock Option Plan is a “rolling” 10% stock option plan. It is administered by the American Creek Board who has the full authority and sole discretion to grant options under the American Creek Stock Option Plan to any eligible recipient, including themselves. Eligible recipients include: directors, officers, employees and consultants of (including the personal holding companies of such individuals), or employees of management companies providing services to, American Creek or its affiliates. The aggregate number of optioned American Creek Shares that may be issued upon the exercise of stock options granted under the American Creek Stock Option Plan may not exceed 10% of the number of issued and outstanding American Creek Shares at the time of granting of options.American Creek Resources Ltd. - Management Information Circular Page 43 of 120 No more than 5% of the American Creek Shares outstanding at the time of grant may be reserved for issuance to any one person (including a company wholly-owned by that person) in any 12 month period, unless American Creek has received disinterested shareholder approval to exceed such limit. No more than 2% of the American Creek Shares outstanding at the time of grant may be reserved for issuance to any one consultant of American Creek in any 12 month period. No more than an aggregate of 2% of the American Creek Shares outstanding at the time of grant may be reserved for issuance to any person employed to provide investor relations activities in any 12 month period. Vesting of options is at the discretion of the American Creek Board, except that options issued to consultants performing investor relations activities must vest in stages over 12 months with no more than ¼ of the options vesting in any 3 month period. The exercise price of a stock option shall be fixed by the American Creek Board; however, the minimum exercise price of a stock option cannot be less than the minimum price permitted under TSXV policies at the date of grant. Options may have a maximum exercise period of ten (10) years. Options are non-assignable and non-transferable. Options that have not been exercised by an optionee will cease to be exercisable and will expire upon the earlier of: the termination of employment, the termination of services or the services agreement in respect of a consultant, or removal of the optionee as a director or officer of American Creek or its affiliates for cause; ninety (90) days after the termination of employment, the termination of services or the services agreement in respect of a consultant (except in the case of a consultant providing investor relations services, in which case, the options cease to be exercisable thirty (30) days after the termination of such service), or an optionee ceasing to be an officer or director for reasons other than termination or removal for cause, unless the optionee remains eligible to receive options under the American Creek Stock Option Plan; the first anniversary of the death of the optionee (if an optionee ceases to be an eligible recipient of options by reason of death, the optionee’s heirs or administrators shall have until the earlier of (i) one year from the date of death of the optionee; and (ii) the expiry date of the options, in which to exercise any portion of the options outstanding at the time of death of the optionee); and the tenth (10th) anniversary of the date on which the option was granted, or such earlier date as the American Creek Board may deem appropriate in its sole discretion at the time the option was granted. A copy of the American Creek Stock Option Plan may be obtained by contacting the corporate secretary of American Creek (see “Additional Information” below). In accordance with TSXV policies, as the American Creek Stock Option Plan is a “rolling” stock option plan, it must receive approval of the American Creek Shareholders yearly at American Creek’s annual general meeting. Refer to “Particulars of Matters to be Acted Upon – 5. Re -Approval of the American Creek Stock Option Plan” below.
A few notes.
As shareholders we voted for this Stock Option Plan - If you don't like it, don't vote for it and remember to think like an owner.
Nothing out of the ordinary, pretty standard stuff.
Is the 32 price that these were granted reasonable?
Do some math.
Starting point is Nov 5th
21D average price is $.35
63D Average price is $.29
Now average both these numbers and you get...... $.32
Do they deserve this? Given what they have had to overcome to get to this point I say yes. I have no real issue with this given how successful they've been.
Now I did say the 32 price was reasonable so instead of this being my conclusion I used it as my starting point as I wanted to find out how that price is determined. That was a little more challenging.
The info can be found here in a tiny little 854 page document lol
The specific section were looking for is
POLICY 4.4
INCENTIVE STOCK OPTIONS
I then found 3.6 Minimum Exercise Price section (a)
The minimum exercise price of a stock option, whether granted by a Tier 1 or Tier 2 Issuer, must not be less than the Discounted Market Price. If, pursuant to section 3.12 of this Policy, the Issuer does not issue a news release to fix the price, the Discounted Market Price is the last closing price of the Listed Shares before the date of the stock option grant (less the applicable discount).
So we have PR dated Dec 5th -1day is Dec 4th which had a closing price of 33
Next what in god's name is Discounted Market Price
And on page 16 of the Corporate Financial Manuel I found this.
“Discounted Market Price” means the Market Price less the following maximum discounts based on closing price (and subject, notwithstanding the application of any such maximum discount, to a minimum price per share of $0.05):
Closing Price Discount up to
$0.50 25%
$0.51 to $2.00 20%
Above $2.00 15%
So if I read this properly (please tell me if I'm wrong) we have 2 data points
Closing Dec 4th of 33
Up to 25% discount since 33 is < then 50
33-25% = .2475 roundup to .25
If I'm right they didn't give themself the discount which in fact their options are just shy of 30% Above what they were allowed. 1 point for management in my view.
Also don't forget, takeovers require a hell of a lot of work so expect them to have to do some serious work going forward.
Hope this helps.