Reconnaissance Energy (Africa) Ltd V.RECO

Consultant

[Oildog]

Is willing to spend 9 million $ for 800000 shares. This is quite telling if your listening. So instead of submiting a bill to RECO for payment they agree to spend 9 million and get paid later.  What could they possibly know.

[Seraphim1]

Did I missed something? Did RECO ever say that the options were granted in lieu of pay or delayed payment to a consultant or are you just making this up?

[Chas15]

It's Tehran's second account probably, $150-$250 will be the next thing he's spouting. 

[Oildog]

No you did not miss anything. It was clearly just my speculation on what could be happening. But when you stop and THINK about it. Would RECO give this type of offer to someone that has done nothing for them. 

[teheran10]

can you guys send email to Grayson to clarigy it please. 

[Bpultra]

============== yes its done all the time ... the insiders grant themselves warrants ... and sometimes for nothing... CPG is a prime example of this 

[Oildog]

The consultants are not insiders ???

[Bpultra]

=========== A director is ... and a warrant is a warrant no matter who they are given to..insider .. consultant or garbage man... the orginal topic as you said  was someone was wiling to spend 9 mill.. that is not correct ...  they didn't spend a dime... they were given 800,000 at 11.39  = 9.1 mill the option to buy these ...  today at the close the 9.1 mil value 

[jimgeorge]

Do you guys even know how options work? Nobody has agreed to pay $9 million for 800000 shares,  this consultant gets a free ride on 800000 shares. He/she doesn't pay a dime unless the share price goes above the exercise price and they choose to exercise the options. Look at  the value of this option deal - if the share price goes up by $1.25, the consultant makes $1 million. For no

[CoreyB]

You're the one that doesn't understand these options...a Director and consultants have been given options to PURCHASE and aggregate of 800,000 shares at $11.39/share for the next 5 years.  So if they choose, at any time in the next 5 years they can pay $11.39 per share in order to own those shares and then sell them at whatever the market price is if and when they decide to sell them.

[CoreyB]

Think of it this way, they have to spend $9,112,000 in order to then turn around and sell those shares for your $520,000 profit.  Quite the gamble if they are only looking for a 65 cent profit. I would wager tey sit on them until this thing is north of $20 at least, turn that $9mil into something closer to $20mil.

[jimgeorge]

How is it a gamble?  They don't have to exercise until the share price hits some target they like, such as $12.64, which is $1.25 above their EXERCISE price, not today's close.  If the share price hits $12.64 they can sell 800,000 shares into the market (assuming there's a market for them all) and then exercise their options to cover them, for a tidy $1,000,000 profit.  

[peterj99]

You have come a long way At first you talked about a worthless scam to now talking about options exercised for $12 plus What's next? A shareholder LOL

[Oildog]

The gamble is he as a consultant probably gets these warrants as payment for services. If the stock doesn't go to say 15 or 20 $. He won't be exercising those warrants hence won't get paid for services.. it's a gamble he is willing to take. By listening to you you think the stock price is elevated by nothing more then hype.. apparently the consultant disagrees with you. I for one