re: Ann: Options Rights Issue Acceptances and... It's always...

re: Ann: Options Rights Issue Acceptances and... It's always interesting reading the range of opinions.

I took my full entitlement. Whilst not generally a massive options fan I see little initial downside with them given 4 years to expiry and fully underwritten.

I wasn't surprised with the take up by shareholders. I think two of our biggest shareholders aren't based in either Aus or NZ, so their entitlement would be significant. It will also be interesting to see if FP & associates participated.

Next if there's 900+ shareholders on the register. Let's say 750 bought $10k worth of cgp at an average of .02 by July last year (around the time of the now defunct deal). Pre-conversion that allowed them 500,000 shares, post-conversion say 100,000 shares. Allow for 1 for 3 via RI and many of those shareholders would have had entitlement to 33,333 options costing $132. Not sure why they'd bother.

However, 750 non participating shareholders with an entitlement of 33k each would give approx 25m options.

I'd be very surprised if underwriters aren't already lined up.

For now I'm treating the options as a separate security without the baggage that the shares have. Not so worried about converting the options to shares at this stage as a lot would need to happen before that can even be considered. However, under the right conditions I can see the options having a nice multiplier effect at some point(s) in time.

My gripe - maybe they could have issued 1 for 2, not 1 for 3.