RE:RE:RE:RE:RE:ConsultantYou're the one that doesn't understand these options...a Director and consultants have been given options to PURCHASE and aggregate of 800,000 shares at $11.39/share for the next 5 years. So if they choose, at any time in the next 5 years they can pay $11.39 per share in order to own those shares and then sell them at whatever the market price is if and when they decide to sell them. No an increase of $1.25 from today's price does not equate to a million dollar windfall for them, it would be $520,000 for all 800,000 shares if they were excercised and sold at your $12.04 target.
Just another way to reward someone for their work, maybe it was and maybe it wasn't an agreement in lieu of actual salary, that is yet to be discerned, but this type of transaction is done DAILY within publically traded companies.
jimgeorge wrote: Do you guys even know how options work? Nobody has agreed to pay $9 million for 800000 shares, this consultant gets a free ride on 800000 shares. He/she doesn't pay a dime unless the share price goes above the exercise price and they choose to exercise the options. Look at the value of this option deal - if the share price goes up by $1.25, the consultant makes $1 million. For no risk. No capital riding on this. It's a huge deal to get a call on $9 million worth of stock. I hope the consultant is worth it!
and yes, the consultant will most likely be paid for their services while they wait to (hopefully) make a killing on their options.