Being a heavy buyer of the options, I obviously have a pretty vested interest. And I do agree that they're the leveraged play here Livas and you do 'live and die by the sword' with these things.
The only point I make (and made at the time of issue) is to have them aligned with management's options. EMS had (has) a clusterucfk of a capital structure for such a small company and management had a perfect opportunity to get things aligned when the options were issued but they chose not to.
I asked management why there was a different date with the options (e-mails below) and SC's response was that there is a difference strike price. Aside from this being a complete statement of the obvious, it still doesn't explain why there is a difference at all...
If someone can explain to me why the options are different then I'll shut up and wear it.
Tuesday, 5 July 2011 9:31 AM "Hi Stephen, just a quick question: What is the rationale behind there being a different Exercise Date for the options noted in resolutions 5-7 compared to those noted in resolutions 1-3? I’m surprised there is any differential there."
Tuesday, 5 July 2011 11:36 AM "They are different options the ones in resolutions 1-3 are listed options with an exercise price of 5c whilst the ones in 5-7 are unlisted and 6c exercise. I hope that this clarifies your query."
No. It didn't clarify my query and still doesn't...
EMS Price at posting:
3.0¢ Sentiment: None Disclosure: Held
