Bonus share option

[Matan]

The asx stock Ryg has announced. That they are rewarding share holder loyalty by issuing "bonus options" to share holders on a record date in the future. They will equal 10% of one's holding on the record date.
What does this mean? Are these redeemable at a fixed price for the duration of the option? Are they able to be sold? If so how?

 

[Nortorious]

The asx stock Ryg has announced. That they are rewarding share holder loyalty by issuing "bonus options" to share holders on a record date in the future. They will equal 10% of one's holding on the record date.
What does this mean? Are these redeemable at a fixed price for the duration of the option? Are they able to be sold? If so how?

Record date is the date that is decided to look at the books to determine who is holding. Basically everyone who is holding on that day (not people stuck in the T+3 limbo) are eligible for options.

You will get an allocation of options (up to 10% of your current holdings) and then have to purchase them at a specified price (usually at a discounted rate to the current share price). If you don't have the cash to pay for them, you can usually sell them on the market. The options will get their own code for a limited time and the price is generally the difference between the share price and the purchase price of the options (if you were a holder). You can sell them using the allocated stock code.

I haven't looked into RYG and how that is working but I recently had options with TWE. They were listed as TWER and I sold on the market prior to the conversion date. Ended up being a poor decision but I didn't have the capital available at the time to buy them myself.

Hope that helps.