Rebel"would the 50% discount be 10c? so 10 million dollars not 5...

Rebel

"would the 50% discount be 10c? so 10 million dollars not 5 million?"

In working out the Fully Diluted MC, many analysts value the options at the same price as the heads & and give zero value to the cash they will receive from the exercising.

So they would add all the option & heads together, times them by the current SP = FDMC

I feel that is a bit Draconian, and gives no value to potential cash they get at conversion time if they are in the money. So for the options, I value them at 50% cheaper than the CURRENT FPO SHARE PRICE - In this case, 5 cents. This lowers the FD market Cap & gives a fairer indication as to whether or not the company is trading at a discount NOW and is a good buy.

I am sure they will have a good year.

cheers