AI
Monday, October 10, 2022 9:32:37 PM
No, let me try to explain my understanding with an example from the table, the 30c row highlighted in red.
For 30c, they get a 32% discount or 20c exercise price Before they could get 32M shares at this option. So the shares would be worth $9M but they would have to pay the 20c per share exercise fee or $6M. So their equity, $9M-$6M=$3M. Now instead of paying an exercise fee, the cashless option would allow them to get $3M dollars worth of shares with no fee. This would be 10M shares (cashless option in highlighted row) but no exercise fee with their final equity is still $3M (their cashless option value), but the company gets no additional money the cashless method. Note the number of shares they get adjust so they always get $3M from 20c up to 1.50 after cashless exercise, it takes more the cheaper the share price. So they changed the agreement where the get to exercise $1M cashless and the remaining must be cash based. They can keep or sell the shares as they see fit, but they will not go over 10% holding. Well if do the math $1M cashless exercise at 24.9c 10 day vwap comes right under 4M shares, which is what the OS just moved up by. So I suspect that is what happened. The next option is 400k cash based option exercise due mid November and the company will get money on the cash based exercise. Again, all IMO. And I am looking forward to listening to the company explain it in their own words.
For 30c, they get a 32% discount or 20c exercise price Before they could get 32M shares at this option. So the shares would be worth $9M but they would have to pay the 20c per share exercise fee or $6M. So their equity, $9M-$6M=$3M. Now instead of paying an exercise fee, the cashless option would allow them to get $3M dollars worth of shares with no fee. This would be 10M shares (cashless option in highlighted row) but no exercise fee with their final equity is still $3M (their cashless option value), but the company gets no additional money the cashless method. Note the number of shares they get adjust so they always get $3M from 20c up to 1.50 after cashless exercise, it takes more the cheaper the share price. So they changed the agreement where the get to exercise $1M cashless and the remaining must be cash based. They can keep or sell the shares as they see fit, but they will not go over 10% holding. Well if do the math $1M cashless exercise at 24.9c 10 day vwap comes right under 4M shares, which is what the OS just moved up by. So I suspect that is what happened. The next option is 400k cash based option exercise due mid November and the company will get money on the cash based exercise. Again, all IMO. And I am looking forward to listening to the company explain it in their own words.
