Articles: Share options

Capital VC (2324) grants directors share options at 87% discount to net asset value
Company announcement, 13-Feb-2020
220m options equivalent to 8% of the existing shares at $0.025 per share. This is a Chapter 21 investment company in the "Enigma Network". The NAV at 31-Jan was $0.189/share. 27.5m options (1%) go to each of the 2 executive directors, approved by the 3 "independent" directors. We call on the SFC to stop this.
Censure of L&A (8195) and various directors
SEHK, 11-Dec-2018
Capital VC (2324) cancels grant of options
Company announcement, 15-Feb-2018
This follows a complaint by Webb-site to the SFC on 2-Feb-2018, noting that the exercise price of the options was an 82.5% discount to net asset value. No reasons are given for the cancellation. Capital VC is a member of what we call the "Enigma Network".
Capital VC (2324) dilutes holders againOptions announcement
Company announcement, 2-Feb-2018
The "Enigma Network" investment company is blowing the general mandate, issuing 19.96% new shares at $0.05, not mentioning the 84.9% discount to Net Asset Value of $0.3308 at 31-Dec-2017. The board claims the issue is "in the interests of the Company and the Shareholders as a whole". The placing agent, Infast Brokerage, is 95% owned by GCPS (8193), another Enigma member. 3 minutes eariler, Capital VC announced a grant of 275m options at $0.058 to unnamed persons. That's another potential 10% enlargement of the share base at an 82.5% discount to NAV. We call on the SFC to direct the Stock Exchange to reject the listing application for all the new shares.
Enerchina (0622) blows 10% option limit in one goExercise disclosure
Company announcement, 5-Jul-2017
The 10-year options have a combined exercise price of HK$197.02m. Note: all of the options were exercised 6 days later. They were desposited into the CCASS account of Enerchina Securities Ltd over 5 consecutive trading days, 14-20-Jul-2017.
China Demeter (8120) blows 10% share option scheme in one go
Company announcement, 7-Apr-2017
What the announcement doesn't say: each of 10 participants, including 4 "consultants", gets options equal to 1% of the existing issued shares, exercisable for 1 year. A similar 10% grant (then 59m shares) was made 10 months ago, on 10-Jun-2016. All of those options were exercised 26 days later, diluting existing shareholders.
L & A (8195): 1.6bn options exercisedCCASS deposits
Company filing, 24-Aug-2016
The holders of these 10-year options all forfeited the time value and exercised them on the day that they were announced, 22-Aug, having been purportedly offered or granted on 22-Jul. The new shares were probably deposited into CCASS on 24-Aug and 25-Aug, via FP Sino-Rich Securities & Futures Ltd (1.4bn) and Emperor Securities Ltd (0.2bn).
L&A (8195) purportedly granted 2bn options a month ago
Company announcement, 22-Aug-2016
L&A has been facing a possible hostile takeover bid since 22-Jul-2016, and now it says, a month later, that on that date it purportedly granted options over 2bn shares to 10 "employees and consultants", of which 1.8bn have been "accepted". Our take: the grant should have been announced under the Listing Rules on 22-Jul-2016, otherwise we cannot rule out the possibility of backdating.
China Demeter (8120) blows 10% share option scheme in one go
Company announcement, 10-Jun-2016
The announcement doesn't state that each of 10 participants, including 5 "consultants", gets options equal to 1% of the existing issued shares.
Jicheng Umbrella (1027) grants 60m options @$1.57
Company announcement, 19-Jun-2015
The options last 1 year. Update: the interim results published 28-Aug-2015 state that the grantees were "consultants".
Time2U (1327) blows 10% share option mandate in one go
Company announcement, 16-Jun-2015
Freeman (0279) blows 10% option mandateAllotment notice
Company announcement, 16-Apr-2013
The 10-year options were granted on 16-Apr-2013 and all exercised on the same day, with an allotment notice issued less than 4 hours later.
Forefront (0885) blows 10% option mandate
Company announcement, 15-Apr-2013

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