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Jones Soda Co. (JSDA) Message Board

  • who_gnu_1235 who_gnu_1235 Apr 4, 2014 2:54 PM Flag

    Show of support

    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.

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    • 1. Some of CT's were at .423

      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.

    • and they can sell them too.. before the stock tanks....theres no turnaround and jones is running out of time..

0.650.0000(0.00%)Jun 24 3:50 PMEDT