This is fascinating.
In July 2017, 1,666,666 new shares were issued pursuant to exercise of unlisted options, expiring 30/6/17 @4.5c. A further 25,928,569 unlisted options (similarly expiring and priced) were cancelled unexercised. That’s arguably fine given that, at the time, the stock was suspended and the Company is still required to do a Chapter One relisting. So, what gives then with the further issue (at that time) of 4,166,667 new shares on account of “underwriting of options”.
Usually, the underwriting of options, shares or SPP, rights, etc actually requires the underwriter to take up and convert any shortfall existing at the deadline date - not get shares for cancelled options. That’s a bit like selling nothing for something.
Now, tonight, a swag of new shares have been issued on account of converting some convertible notes at 1c (or less). Again, largely paper symbolic rather than of substance but it’s interesting. Reminds of someone else who converted some notes but only after going to an XGM and asking for the conversion price to be dropped because they wanted (apparently, were entitled to) preserving parity with the Issued shares (ie: any dilutive or dilutive adjusting for value). Now, that same company is about to hold another XGM to get a new REM which will be twice as generous and half as difficult to scale as before. That’s forward thinking!!!
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