RE:Exercise of options For Mr Ros de Lochounoff, this is a first participation in the share capital of Robex. This is what the line “Opening Balance Initial SEDI Report” mentions. These call options were issued with an exercise price of 9 cents and were to expire on July 16, 2022.
For the exercise of these call options, Mr. de Lochounoff must immediately transfer the sum of $27,239.94 to Robex (302,666 shares x 9 cents). For this amount to be paid, he can either sell 75,000 shares at ~35 cents, use his personal funds, or a combination of the 2. Given the amount to be paid, the sale of 75,000 shares would be fully justified and should not be perceived as a lack of confidence.
For the 2022 tax year, he will have to pay tax on the difference between the purchase cost (9 cents) and the SP at the time of exercise (34 cents), or a capital gain of 25 cents per share whether there is a sale of its shares or not. In this case, the taxable amount is $75,666.50 (302,666 shares x 25 cents). For a Canadian citizen, the calculation is made on 50% of the capital gain of $75,666.59, then taxed according to the rate in effect and his level of income. Using the theoretical tax rate of 40%, the tax amount would be $15,133.30 ($75,666.59 x 50% x 40%). Given the amount to be paid, a second sale of shares would be fully justified and should not be seen as a lack of confidence.
For shares that will be sold later, the capital gain will be calculated based on the sale price less the purchase cost of 34 cents (SP on the day of exercise).
In consideration of the amount to be paid in 2022, ~$42,373.24 ($27,239.94 + $15,133.30), I am waiting for whoever will dare to tell us that the management team is selling shares for lack of confidence.
For Mr. Marti, the rules are the same.