Post by
tulsatea on Jul 30, 2013 5:57pm
Options
CALGARY , July 30, 2013 /CNW/ - Pinecrest Energy Inc. ("Pinecrest" or the "Company") (TSX Venture: PRY) announced today that holders of an aggregate of 13,030,000 stock options of the Company ("Options") have voluntarily surrendered such Options for nominal consideration. Following the surrender of such Options, the Company has 235,000 Options outstanding pursuant to the option plan of the Company, which represents, in aggregate, approximately 0.11% of the issued and outstanding common shares of the Company ("Common Shares").
Comment by
tulsatea on Jul 30, 2013 6:15pm
Should be a postive--assoming they don't go bonkers and issue more options. If they do issue more options, the market will punish the share price harshly. The average price of the options according to the presentation was $1.76.
Comment by
billyjoebob on Jul 31, 2013 7:00am
Why would management do this? It costs them nothing to have the options sitting out there, and it's not inconceivable that a $1.50 option will pay off in 2 to 3 years. Who knows, oil might go to $150. So the only reasonable interpretation is that management is expecting a buyout below the strike price and wanted to cash them in before the offer was made.
Comment by
billyjoebob on Jul 31, 2013 8:24am
99% of employees decided to tender options at the all-time low? Does that make sense? "Hmmm, stock is at an all-time low . . . time to cash in my options!" No. Hope springs eternal, unless they know something else.
Comment by
billyjoebob on Jul 31, 2013 9:11am
I punched the numbers into an option calculator, 1000 days to expiration, $1,50 strike, 35% volatility, that was worth 15c. So we're probably talking about $1M to $2M dollars, enough to matter, not big enough to disclose.
Comment by
billyjoebob on Jul 31, 2013 1:45pm
Renegade surrendered optionss on feb 5 . . . then stock collapsed.