Analysis of price weakness q1 / 21 ex sedar financials March 31, 2021
Redeemed options q1 / 21: 860k
exercise price: 2.15 cad
trading volume TSX-V: approx. 1.4m
Share of redeemed options / trading volume: approx. 60%
Option structure:
706k - 3.75 cad - 09/27/2022
2.11m - 3.30 cad - 04/29/2024
1.85m - 4.56 cad - 10.12-2025 (alderley deal)
185k - 4.55 cad - 01/19/2026
1.1m - open options (according to sharesholder plan)
My conclusion:
The price weakness in Q1 is almost exclusively associated with the expiry of options on March 21, 2021. These were allocated pre-Alderley. The allocated 1.56m options at 4.56 cad as part of the Alderley deal further strengthened management's commitment. If necessary, one could have kept the 'valuable' limited options according to the stock option plan in order to stock up on some 'tricks' more cheaply. The share price is no longer capped and has since developed a nice bottom at 4 cad. Ready for a ride ?!
Peter