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RNS out. Worth reading. Lots between the lines in there. I am encouraged they still talk of partnering the vascular grafts. Could all be hot air but no benefit to the directors for 3 years unless prior takeover etc.
Sort the options out before the music starts. Very reasonable awards at 11p - in line with shareholders interests
Plus, everything is on track and note the word "earlier" - nice.
"more agile executive team is allowing the business to focus on its three key objectives to achieve cash generation earlier, to grow and develop contract manufacture, to commercialise the heart valve leaflet material and to partner the remaining regulatory pathway for vascular grafts."
All seems to be going the right way, waiting for a re-trace under 11p to buy some. New executive team on top of things and pushing things forward and a quicker rate than expected
”All outstanding Options shall be exercisable on the expiry of the period of 3 years from the Date of Grant, with the usual acceleration of vesting in the event of a takeover prior to the final vesting date. Additionally, if a return of capital is proposed at an amount per share that is greater than the exercise price per share of these options, they will vest immediately prior to such return of capital to allow option holders to participate.”
Getting their options in place ahead of such possibilities?
I like this RNS as it aligns the BOD's with the company success.
In the past, they've bitten off more than they can chew by trying to finance heart valve development and vascular graft clinical trials in-house while under-capitalised, which resulted in over staffing and under funding. They now see, I believe, that if they can development a basic cash generating business like contract manufacturing and licence out and/or sell interests in the cutting edge developments, then all could be dandy in the garden. While they are at it, line up some options! Good thing is it is done at the market price which is also the placing price that the rest of the plebs paid to refinance this vehicle. So far so good.
11P in encouraging and underpins the share price currently
Would someone mind clarifying for me as I am unsure, if these options were taken in full does that amount to dilution of the existing shares issued, or are these option shares held by the business already?
I agree it is a positive development and aligns and incentivises the board. I think it signifies the hope and perhaps expectation for positive developments in due course within the two segments of the business that are most likely to drive the share upwards - Structural Heart and RUA Medical. With the cost savings from the personnel changes It looks like Bill Brown is intent on pushing the Company to break even/profitability as early as possible.
GreenEyes1, there would be 3.6M new shares issued down the line if and when the holders exercise their rights to buy them at 11p (3 or more years or after earlier takeover/capital return). There are already close to 2M shares under option and those would also be issued if taken up. So, as with most option schemes, a dilution when the shares are eventually issued but only in the sense that the share price might be higher at that time. They will still result in money of 11p a share being injected into the company's bank account on the share issues. Meanwhile, we holders should have benefitted from the price rise from today.
Thanks
Options are not like warrants . Options are part of directors pay package and are incentive based. Warrants are investor freebies if your having trouble and /or bad negotiating Re a placing and are usually forward sold as soon as in profit. They have a negative effect on the sp when on a run. Luckily, we have no warrants.
Options are held by insiders who will hold for the max benefit - its the directors pay day on success.
This award is excellent - low number for holders but enough for directors to succeed and at justifiable price. Most of all, its a message that they are very confident - they know more than us.
Yes I agree the options award creates interesting speculation about timing and potential developments with the MTA. Also I believe they are putting the new patent application for the material within RUA Structural Heart rather than the usual business section holding the IP . RUA structural Heart is being structured for a licensing deal or outright sale I think. So the terms referencing the options kicking in on a return of cash or takeover might be fairly standard but they were made very clear in the RNS - so an indicator of how things could pan out. I think if the MTA does move forward it will result in an a sale of the division and a return of cash rather than a licensing deal depending on the amount offered.
Strange that sellers are still out there at this level. Another 110k at the close. They are not convinced or are impatient.
It’s giving me opportunities to keep picking up below 11p which I regard as a floor with the options announcement by those who are closest to the action. I’ve bought quite a few this week between 9.94 and 10.99.
Surely casual sellers must dry up soon.
If you’re in the market for 50k-100k lumps at these prices, you can thank the sellers for the opportunity!
Someone is there for it. Unfortunately retail has been feeding the buyer. Very silly.
Best get them out of the way now as they are clearly not investors - if only a few traders left when a re rate happens, makes it stronger.
We know that with the right news this could easily hit a quid - much easier if you have holders who realise it and not scalp all the time.
Best, we don't have placing and warrant worries haunting us - we know the bottom unlike so many punt stocks.