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What does this mean?

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9 September 2011
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Grand Gulf Energy Limited announced the issuance of 187,500 ordinary fully paid shares at AUD 0.015 per share. The shares are issued pursuant the exercise of options.

Does this mean that they are issuing shares to existing holders, or are they buying them back? Would it be a good or bad thing?

Thanks in advance,

Phil
 
Does this mean that they are issuing shares to existing holders, or are they buying them back? Would it be a good or bad thing?

Thanks in advance,

Phil

Phil

Sounds like listed or unlisted options are being exercised...so new shares are being issued to option holders that may or may not be ordinary share holders.
 
So cynical summed it up,

Whether it is a good thing or not depends on a few things,

1, is the price the options were exercised at fair,

2, how many were issued in comparrison to the total capitalisation, ie were holders badly diluted.
 
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