Directors compensationHi I would like to comment on compensation and let you judge on the value of compensation,
I think all directors have been allocated 1.5 million options at a price of 0.05c for 5 years.
That is good because directors if i understand right still has to be a director to exercise the options.
The value of that 1.5m options at 0.05 c in 5 years is
If the stock price is still at 0.05c the value is zero. (the only compensation to directors would be the expenses and small $ paid to participate to board meeting.
If the stock price is in 5 years at
1.5m shares at 0.10c = $150k - $75k = $75k gain at exercise date ($15k per year)
1.5m shares at 0.15c = $225k - $75k = $150k gain at exercise date ($30k per year)
1.5m shares at 0.20c = $300k - $75k = $225k gain at exercise date ($45k per year)
And that is only when the maximum option plan was 14.5m shares.
$15-$45k in profit per year if the price of Abcourt shares is raised from 0.04c to 0.20c in 5 years.
Now the maximum options share allowed has been upgraded from 14.5m to 42,810,000 shares.
So if directors vote themself options to a maximum of 42.8m shares at 0.05c their profit could be multiplied by 4.
If you devide the profit at exercice in 5 years the profit of 8 board directors could be over $8m.
Yes this the extreme but it shows that directions could manipulate to keep the share price low for a few years and grant themself options at 5c .
On the other side I have faith in Mr Hamelin to do everything to increase the price in the next year and then issue options to board members at a much higher price.
I might have errors in calculations due to having consumed a bottle of vine.
Fernand