Exercising company issued options (i.e. not ETOs)

[cuttlefish]

Anyone exercised company issued options (i.e. the type commonly on issue for spec explorers etc.).

If so what was the process and how long did it take for the shares to appear in your trading account (and the options to dissappear). Can they be exercised by fax? Also is it only possible to exercise them by sending the exercise form yourself directly to the company, or can you ask your broker to exercise them for you. How was payment made - can you do it electronically or is it basically send in the form and a cheque?

 

[reece55]

Re: Exercising company issued options (i.e. not ETO's)

Anyone exercised company issued options (i.e. the type commonly on issue for spec explorers etc.).

If so what was the process and how long did it take for the shares to appear in your trading account (and the options to dissappear). Can they be exercised by fax? Also is it only possible to exercise them by sending the exercise form yourself directly to the company, or can you ask your broker to exercise them for you. How was payment made - can you do it electronically or is it basically send in the form and a cheque?

I operate the other side of this equation some times cuttlefish, it varies from Company and provider, but for me (our clients registries are with Computershare):

* Generally, specifically with smaller entities, contact the Company Secretary - after all, they are lodging the Appendix 3B which comes second after they know you have deposited the funds.

* Faxes are acceptable, as long as you correctly identify the name of the party exercising and you have the relevant exercise form.

* Allotment will occur once clear funds have been received. This means if you have made payment by cheque, expect to wait more than 3 days AT LEAST. EFT is fine, because an accountant can confirm receipt

* The secretarial department will then process the exercise by sending the exercise form to the registry and lodging the appendix 3b. If you are CHESS sponsored, specify it on the form and the registry will then ensure it is processed this way. Generally, from the date the registry receives the exercise form, the whole process takes about 48 hours. If you want to dispose quickly and realise the profit, it is easiest to simply just get an SRN and provide this to your broker (i.e. don't go through the CHESS proces) - generally it takes a little longer for your holding to be registrered with you broker if you are CHESS sponsored.

Hope this helps.

Cheers

 

[cuttlefish]

Re: Exercising company issued options (i.e. not ETO's)

Reece - thanks for the detailed and informative reply, I think you've pretty much covered it all there.