NKP 0.00% 9.9¢ nkwe platinum limited

nkwe platinum listed options

  1. 1,616 Posts.
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    Having spoke to a couple of shareholders who held NKP earlier today and we spoke about the issue of extending NKPO if its still out of the money by 31st August 2011.

    There was an issue that was raised that I kinda agree with them.

    My mates are against the extension of the NKPO because they feel that this would be unfair to shareholders.

    Why should options holders alone get a time extension when shareholders have nothing in return. Say the options do get a 1 year extension, and say later down the track a JV or a large corporate deal is done then instead of raising cash at a fairer market reflected value, the company gets diluted unessesarily if the options exercise price is say close to 35cents.

    If the deal was for say, for every 5 or 8 shares that are held by a certain you can apply for one listed option for a minimal fee then this makes sense since it gives the opportunity for all shareholders to participate. After-all its the shares that gives you ownership and voting rights in the company not the options. Say if there is a options shortfall take-up then this shortfall preference can be given to option holders that has now had their options expired.

    My mates reckon they will consult legal advice if option holders alone are given preference. They see that anyone who buys options have to acknowledge that there are higher risks involved because you are essentially leveraging and also betting on a timeframe. The fact that there was a 4 month suspension on Nkwe is not an excuse for extending the options exercise timeframe since both the shares and options were suspended. Its shareholders also that could not trade their holdings.

    I personally do not care if indeed the options gets extended but I do also realise what my mates said makes sense.

    What are the thoughts of others on this issue?
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