WINSPEAR RESOURCES (WSP.V)
News release:
The Company announces that it has amended the exercise price of existing
incentive stock options to certain of its directors, officers and employees to
purchase up to an aggregate of 2,200,000 common shares of the capital stock of
the Company. The exercise price of all of said options will be $1.62 per
share, being the ten-day average closing price of the Company's shares as
traded on the Vancouver Stock Exchange. The foregoing transaction is subject
to acceptance by the applicable securities regulatory bodies.
Comment: The company had the options price at $3.66 a few months ago and then unilaterally changed the price to $2.04 less. They are expecting diamond assay results out any time, and if they are good, then the option holders will make $2.04 per option more than they would have made a few days ago. This was done at a time when regular shareholders' stock had gone from a high of $4.55 to around $1.50. The new option plan by my math dilutes regular shareholders value by about $4,500,000, or about 8 or 9% with market cap being around $51,000,000 at the time of the NR. Plus, when the NR was made, the stock went down another 6% or so. Also, the company had a private placement a while back at prices that I believe were in the $3 range. The people who participated in that are getting shafted too. If you want to comment to mgt., their toll-free US number is 1-800 686-7744. Regular phone is 604 687-6644 |
