So the options are performance related and will not enter into consideration until such a time where revenue targets are met i.e. possibly after FY19 results reported but most likely have more of an impact in 2020 and beyond.
The Tranches of investment that Dr. Li has committed to are awaiting shareholder approval. These investments are for actual shares and not options. If the approval is not given I imagine the Careline partnership would disintegrate and the expansion into China will become extremely difficult if not impossible. I would think this is virtually impossible given the current share register.
If options are not approved/issued in the future then the share count would only be diluted by the upcoming Tranches of investments to be made by Dr. Li, HOWEVER if the options are not issued then the company is failing to meet the targets that have been set. (As with any investment - there is no certainty that Dr. Li / The Food Revolution group will generate significant sales growth).
Essentially we want to see the investment made and ideally the options issued as it would mean Dr. Li is heavily invested in the success of the business and is driving significant revenue growth.
FOD Price at posting:
9.2¢ Sentiment: Buy Disclosure: Held
