JC, CT. MB, SS and RC just exercised options (strike prices between 0.29 and 0.34) to accumulate additional 50k-200k shares. Options were exercisable as early as 2012-2013 with about 10 yr life. They all chose this time to show support purchasing shares at the strike price.
2. As nice as it is to see this show of support, I have to question the logic of exercising the options vs. making open market purchases at this time. The dollar amounts we're talking about are not very large, so if they are confident in the future why not buy the shares at .43 to .45 (even if spending the same amount of money for slightly less shares)? The options are exercisable for another 10 years, so why exercise them now? To save 5 to 15 cents/share? We all know they were at 90 cents a few months back. If it were me, and I was buying because I thought the shares were undervalued and would recover in the future, I would have bought shares in the open market, and exercise the options later - when they were way in the money...then I will have made lots more money. It costs nothing to leave the options unexercised. In my view, not too smart on the part of these folks.
3. Further, by exercising the options instead of buying on the open market:
a) New shares are being issued - shareholders are being further diluted.
b) Money is paid to the company providing additional cash. I hate to think that they all may have chosen to exercise at this time as a mechanism to provide the company with needed cash. Again, it's not a huge sum of money and if the company is in such dire shape, well, you know.
on the same day some got option grants fully vested after one year , and others exercised options..all on the same day .....one can speculate the exercised options were a gift from JSDA ..giving them free shares ...and making it look like insiders are showing support...when the company paid to exercise those options and getting the money back ....then it doesn't look like those folks are not that smart... does it ...
true, but recognize that they have not sold any at time of exercise. this is in contrast to a common practice to sell a portion to cover exercise price so that remaining shares are free - they have not done this.