a better option ???

Have just received my Entitlement and Acceptance form for the Options Rights Issue and have been considering whether to participate. Only a few hundred dollars worth so not much to lose ... but is there a better way to play CGP?

Using a round figure of 100,000 options at an issue price of $0.004 (cost $400) and an exercise price of $0.06 ($6,000) gives a total cost of $6,400 if shares reach 6 cents and are eventually exercised.

However, with the shares currently at $0.024 and trending downwards, a better alternative for those who think the share price might eventually improve may be to spend a bit more now to buy the heads, i.e. 100,000 @ $0.024 = $2,400. Any appreciation in price will be a positive outcome and if the shares do eventually reach 6 cents, then a profit of $3,600 ($6,000 less $2,400 cost) will be achieved.

This compares with a loss of $400 when exercising the options, i.e. a difference of $4,000.

Whatever share price is eventually achieved beyond 6 cents, the Heads will always provide a $4,000 bigger gain than the options using this approach.

Unfortunately, this doesn't help CGP with the funding it is seeking to assist in commercialising the BA technology.