Interesting that the exercise of options, if they all come into play over the next two years, could provide MRL Corp with a significant part of the funds it needs to grow the business.
The listed options (MRFOA) have an exercise price of 20 cents, and an exercise date in October next year. While the SP has a fair way to go before they become "in the money", there is plenty of news to come in this time period, including planned production, potential offtake agreements and sales of high purity graphite that could initiate cash flow for the company.
So one can't rule out the MRFOA's being exercised - if they are, there will be $9,878,710 for the company's bank account.
Anyone thinking of investing in the options needs to think about the risk - if the head share is below 20 cents at 17/10/16, then they will be worthless (it will be cheaper for you to purchase head shares rather than exercising the options)
But, if you are confident that the share price will be above 20 cents in October next year, the options are great value - they provide much more leverage. How much of a gambler are you. It's probably a good idea to have an "each way bet" and split your investment between options and head shares. (That's what I have done).
Then in May 2017, the next tranche of unlisted (not tradeable) options (exercise price of 10 cents) would produce $8,250,000 if exercised. If current progress continues, that's got to be pretty likely.
One more tranche, again unlisted, due late October 2017 (exercise price 9.2 cents) would build the company's coffers by another $1,104,000.
So, considering the low costs associated with the company's path to production, there may not be much need for too many more CR's.
MRF Price at posting:
5.3¢ Sentiment: Buy Disclosure: Held
