White Shoes,
Keep in mind I'm on the same side as you are (I'm just researching the publicly available documents and using what I know as an investor), so my thoughts are my interpretation only. I have not consulted with management at go2net or a financial advisor with respect to my comments.
From the 10-Q,
As of March 31, 1998, there were options to purchase an aggregate of 938,249 shares of Parent Common Stock outstanding.
I believe this means that 938,249 options have been "granted" from the "pool" prior to March 31, 1998. I would assume that the average price has moved up significantly from $7.90, since that was a number provided in 1997. I imagine some were granted (pre-IPO), then on an ongoing basis as at prices such as $6, $9, $12, $15, $20, etc...Options being granted today (if any) would be priced in the low thirties.
The option "Pool" (proposed to be 2,500,000) is the total number of options that have been granted, plus the number that can be granted at a future date. The price (sort of like the "strike price" of an ordinary option) is determined at or near the date of grant (it can be an average of the last N trading days).
Newly granted options will be priced at the current price of the stock. They will only have a tangible value after (1) they vest and (2) the stock is higher than the strike price and (3) they are exercised by the owners.
It is my understanding that options in a publicly traded company cannot be granted at a below-market price.
Brad |
