RE:RE:RE:RE:RE:conversion of warrants/optionsIn your example P3 may be selling LESS than 45k shares to cover taxes (cap gains, etc). His % ownership increases depending on the ratio between shares sold and options exercised. I think that's what I also hear developbc saying...
StairwayTo wrote: I’m pretty good at math, it’s the concept of options/warrants that I’m less familiar with.
In my example, if you exercise your option to buy 45,000 shares from the company’s balance sheet float and sell the same 45,000 shares to the market,
You haven’t increase your % shares holding, if anything, you increase the total outstanding shares to the open market and therefore reduced your %, doesn’t it?
Don’t worry, get home safe, maybe someone else has the answer.
Thanks again.
developbc wrote: Simple mathematics. I'm on the road now so not going to calculate for you but very simply as he needs to sell less shares to execute and cover all taxes..now the new greater # of shares via options increases his share count..which definitely does.
The % increase relative to his total share count is minimal bc his # of shares is so massive..but it definitely increases.
Long and strong PYROGENESIS
StairwayTo wrote: Yes thank you developbc, i do get this part, but how does it increase his control of % of the float as some say?
developbc wrote: StairwayTo wrote: I get that these options are some sort of bonus given to management or employees and that there have an expiry date, so of course they will all be exercised understandably.
And they can do whatever they want with the proceed, pay taxes on the gain, buy expensive things, save it etc…
What I don’t get is how some say that by doing so, Peter will increase its control or % of shares.
If you exercise 45,000 shares at $0.20 but sell it right back to the market, how does it increase your %.
Sorry, I’m missing this part of finance/trade, if someone could nicely explain it will be appreciated.
Peter will need to sell shares to convert the options strike price and huge tax bill for taxable benefits and capital gains of sale.
Long and strong PYROGENESIS!