7.22 An entity with options on issue must comply with the following rules in relation to the way the options are treated under a reorganisation.
7.22.1 In a consolidation of capital – the number of options must be consolidated in the same ratio as the ordinary capital and the exercise price must be amended in inverse proportion to that ratio.
Example: Company A consolidates 2 fully paid ordinary shares of into 1 fully paid ordinary share. Every 2 options exercisable at $1.00 each are consolidated into 1 option exercisable at $2.00 for 1 fully paid ordinary share.
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