Ann: Hazer Intellectual Property Update, page-64

1. Can they change the expiry date of the options? or  does that  require a shareholder  meeting. ?

I have been involved in other rights issues, where they  allow other shareholder to take up unused allocations.

Usually if MIN holds alot of options, it would be customary for them to announce that they  will take up their options. 

I am so far  underwater  that I should have cut my losses long  ago. So is it  putting good money after  bad a good idea. 

2.Yet they have not missed any milestones, and they have the backing of  a  $3B company who love the tech. 

People do not  perceive this as a tech  stock,  nor is it a mining stock. 

The capital to develop a mine is massive,  so people from mining background would consider this a cheap play  and doable,

as   Geoff Ward would say. Nor is it a pure tech play, since it requires continuing capital. 

I think the principals have  so many future options, that they probably are not worrying too much about buying more shares.

 

Existing shares. 88,000,000

Series C options ( exercise price 25c expiring 31 Dec 2018 ) number 5,250,000

Series D Options ( exercise price 40c expiring 31 Dec 2019 ) number 5,250,000

Series E Options ( exercise price 30c expiring 31 Dec 2018) number 10,300,000 + 16,000,000.

Correct me if I am wrong. 

1. If the share price goes over 25c. likely company will get 1.25M for exercise of series c options.

 2. if share price goes over 30c. company likely to get 4.8M extra from exercise of series E options. 

So a company worth $26m is going to ask for $6M very soon. 

And take its asset backing from about  4c  to 11c in cash. 

( Does this mean a 30c share is  worth  37c after the options issue, assuming the extra cash) 

Maybe GW is against the series C option holders  making too much of a profit, they look like  20% in the money.

Average share trading is about  3M-4M per month,  so about  3 months to clear the share overhang if  50% people flick their shares. 

Then again, this company probably needs a bigger shareholder  base.