Bonterra Energy Corp T.BNE

To Friends in the 100 acre wood

[snowshoedb]

We often hear about the options being granted to the hard-working, dedicated risk-taking well educated employees of the company.

The consistent drone from the hundred acre wood is that the employees are diluting the company at other shareholders expense… Of course this is a complete fallacy.

Here's a quote from the notes to the Q3 financials:

The Company provides a stock option plan for its directors, officers and employees. Under the plan, the Company may grant options for up to 3,623,802 (December 31, 2021 – 3,500,095) common shares. The exercise price of each option granted will not be lower than the market price of the common shares on the date of grant and the option’s maximum term is five years.

how can you call this dilution when the grant to the employees are paying market price? The options are merely golden handcuffs to retain talented, dedicated individuals who are approving up value for the rest of us. Shareholders were doing nothing but providing our money… Those dedicated employees are providing blood, sweat and tears. They don't punch a clock from 8am to 4:30 pm. They are dedicated individuals providing industry, knowledge and expertise, that they went to school for many years to gain, and have employed for many years inside the oil industry.

We shareholders are riding on the coattails of their efforts. Personally, I appreciate the opportunity to be able to participate in a public venture, such as Bonterra.

[bandit69]

Typical Canadian.  "oh the employees work so hard so they deserve much reward at my expense".  It's like hiring a money manager who makes money off of you and not for you.  The same money manager that drives a Lambo while you ride the bus to work to your miserable job everyday. Of course options are dilutive sheesh, and benefit those who receive them if they are in

[churchofnutsacc]

I mean, call it what you want, that's 10% of the float. The only reason to be invested here is because of the small float.

[bandit69]

Current float : roughly 36,200, 000 all currently issued options 3,623,802 Hypothetical (but could be reality) If BNE was paying .10/mth or 1.20/yr dividend that = 36,200,000 x $1.2 = $43,440,000 total payout/yr if all options are exercised that : $1.20 divi/yr x 3,623,802 = $4,348,562/yr in additional divi outlay $4,348,562 / 36, 200,000(current float est) = .12/share in dividends that are

[bandit69]

And to add many shareholders have not made a penny of return for 8 years here.  Factor in inflation at 2% for most of those years except the last couple and now increasing interest rates that affect the value of future cash flows and shareholders have lost a pile of cash and have been hammered and are still waiting not only for ROC but for the share price to actually have something appealing

[snowshoedb]

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

[bandit69]

It would not be $25MM as you suggest.  I think you should read about options because it seems clear you do not understand them.  For example, there are 2261600 options issued at 2.56.  As of today's closing of $8.20, these are called in the money options because they can purchase all of these shares, which would be new and dilutive shares, at a cost of 2261600 x $2.56 

[bandit69]

Sorry, to clarify, the 2261600 options was as of Dec 31 2021 but you get the jist.