Why would Mr G now pay 15c for shares (option conversions) that...

Why would Mr G now pay 15c for shares (option conversions) that he can buy on market for 3.5c? At the time he made his tentative commitment in November the price was about 12c and it could be supposed that with his payments of $1.8 M various new definite moves could be made that would generate progress and positive announcements that could lift the share price still further by the beginning of March. It didn’t happen.

Any new announcements at this point in time can have only a marginal effect if any. Even if Mr G were to convert by 31 March it is too late to impress shareholders. NSP management had to gradually re-establish their credibility in the two months leading up to 31 March. Any attempt to do this in impulse fashion in the last week before expiry just will not be believed. In any case, for options to be converted the SP has to reach at least 17c and stay there for some time. What likelihood?

One might also speculate on why an astute investor would offer to convert options at a premium to the Nov share price and 4 months before expiry. Probably an incentive was promised regarding the Singapore facility which then did not materialise. We now have the fall out.

Juke