RE:RE:To Friends in the 100 acre wood What about the 3.6 million options exercised at market price and then put to work in the business? If the additional money let's call it $25 million is used to pay down debt… Then that saves the company on interest! It also is money that they don't have to earn as earnings to pay down the debt.
better yet employed the dollars with additional drilling on wells that pay out in 6 to 8 months… Now you're getting additional equity that you wouldn't have gotten.
imagine I own a house worth $1 million and in buying that house I was issued 1 million shares. My equity is $1 million.
now I issue options at the fair market value of one dollar share. I issue 1 million options at one dollar. The employee exercise is those options… The fair value of the company is now $2 million… 1000,000 in the form of a house and 1 million cash… fair value per share is still one dollar.
issuing shares at market value is not dilutive! And if they can take the additional money and generate on that increase return. Then the existing shareholder has gained… And they wouldn't have gained had they're not being additional investment in the company.