loss to company and shareholdersIf he is entitled to 500,000 shares at 0.55 when the price in 10 years is 10.55 (this is for illustration only) then that is 500,00 shares at 10.00 or $5million dollars that the company does not get and that makes the company value 5million less than it should be. This involves time value of money , iand as I said this is atrocious. God help us if the company decides to do something similar each year.
The quickest way to get rich in Canada is to start a junior mining company. Look at any of the financial share structure informaion in their prospectus or annual statenets and you will see the majority of the information (15 out of 32 pages) is the disclosure of the issuance of shares and annual share options and warrants at very low prices compared to the IPO and subsequent rounds of shares issued to the retail investor market .