The ASX Listed Potash company, Danakali Limited (ASX: DNK) today announced that it had issued 832,772 unlisted options to the Head of Corporate Development and External Affairs, William Sandover. This information was part of the PCA (Person Closely Associated) transaction notification.
The unlisted options are exercisable at A$1.031 expiring on 24th January 2022. The shares of DNK closed flat at A$0.800 on 04th March 2019. The employee, William Sandover has the right to buy the shares at A$1.031, and this right is available till 24th January 2022.
The share option schemes are used as an incentive for employees. A share option is the right to buy a certain number of shares, in this above case- 832,772 shares, at a fixed price (A$1.031) sometime in the future.
The options give the employees the right to buy the shares; the employees would exercise the right if the underlying company’s shares are trading above the option issue price. So, this scheme of arrangement rewards the employees, if the company fundamentally performs well and hence the share price appreciates due to the better fundamental prospects. The stock option schemes are used to bring the employees’ interests in alignment with the company’s interest. Stock options are believed to induce long term thinking among the employees, and hence it is believed to be a win-win arrangement for the employee and the company. However, it is to be noted that the stock options are EPS dilutive in nature as the number of shares increase with the employees exercising the options.
DNK issued quarterly activities report on 31 Jan 2019. The report stated that as of 31 December 2018, there were a total of 264,422,398 fully paid ordinary shares on issue. During the December 2018 Quarter, the company issues 216,364 shares on the cashless exercise of 750,000 unlisted options at A$0.55.
The quarterly report also highlighted that in December 2018, CMSC executed a mandate to provide debt finance facilities of US$200 million to fund the development and construction of Colluli.
The report also highlighted that The United Nations (UN) Security Council voted on 14th November 2018 to lift targeted sanctions against Eritrea. As per the company report, this development would help to enhance international trade opportunities, leading to improved economic outcomes for Eritrea.
The company in the report also mentioned that, the Head of Corporate Development and External Affairs, William Sandover, presented at the Bell Potter Emerging Leaders Conference 2018 in Sydney, Australia.
The Stock Information:
The stock has appreciated by 10.43%, 5.96%, and 5.26%, in the past six months, three months and, one month respectively.
The shares of DNK closed on 4th March 2018 at A$0.800 on ASX.
Danakali Limited (ASX: DNK) has a market capitalization of $211.54 million. The Stock has noted the 52-week low price of A$ 0.560 and the 52-week high price of A$0.940. The company has an EPS of -0.012 AUD.
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