Have just received my Entitlement and Acceptance form for the...

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.