Hi
@quoc11, the company many years ago created a few hundred thousand share options that were issued to senior staff and BOD as part of their salary packages when it was a fraction of its current market cap. The price to convert them from options to fully paid shares was set at 63c. All of us early investors were offered the chance to buy shares at 63c as well in the capital raising but regardless of how many you subscribed to it was scaled back to maximum of a few thousand shares. When a company is in its infancy money is tight and cash is best used to grow the company and with the help of these cheap share options to make up salary packages cash burn is minimized so share options are used to attract and retain top shelf CEO and management and to grow the company to where it needs to be.
At the last AGM i got up and put it to the BOD and the CEO that this was fine when the company was less than a tenth of its current market cap and needed all its COH (Cash On Hand for newbies on this forum) for expansion. I put it to them that even after the buy in of Synlait they had hundreds of millions in the kitty with hundreds more rolling in every year and no debt whether it was acceptable to continue to issue new shares diluting existing shareholders share base. They said they have discussed the issue amoungst themselves and would address the situation in the future. Hopefully they remain true to there word and its the last time new shares are created out of thin air at our expense and solely for their benefit.
You should make the time to research and learn about the assets class you have invested in. All the banks trading platforms have excellent sources of information and free trading courses to bring you up to date with how things work and explain trading terms and explain what things like options are. You can look up on the ASX or A2M websites for previous announcements to see how many time and performance based shares have been issued and to who they were issued too. What if any excise price is on them and when they vest, its your responsibility to educate yourself.
All of us here were once newbies like yourself but if you have your hard earned invested in stocks then you need to learn more than just what your login and trading password is. Just like investing in realestate you need to ask others you know who are more proficient in shares. You will find it easier to understand stock keywords in discussions on the A2M and any any HC forum if you are more knowledgeable in the terminology of stock trading world.
Nothing personal as I only trying to help you better yourself and your chances of not making mistakes from inexperience and increase your chances of success from investing or trading in stocks, good luck.
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