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Almonty Industries Inc. (ASX:AII), a mining company specializing in tungsten, has announced the issuance of 145,000 common shares following the exercise of unquoted options under the security code AIIABF. These options, priced at CAD 2.835 each, were set to expire on 4 March 2030. The conversion took place on 1 July 2026, with the company filing the necessary regulatory notification on 2 July 2026. The newly issued shares rank equally with existing common shares from their issue date. The company also confirmed that these options were not granted under an employee incentive scheme. This early exercise may indicate confidence from the option holder regarding the company's near-term prospects.
Key Points
- Company: Almonty Industries Inc. (ASX:AII)
- 145,000 common shares (AIIAA) issued on 1 July 2026 by converting unquoted options (AIIABF)
- Options exercised at CAD 2.835 each, originally expiring 4 March 2030
- 203,000 AIIABF options remain outstanding after this conversion
- Total quoted CHESS Depositary Interests (CDIs) on ASX: 4,714,407; total common shares issued: 283,390,444
- Options exercised were not part of an employee incentive plan and not held by key management personnel or associates
- Investors should monitor potential further conversions from Almonty's extensive unquoted securities register
Details of the 145,000 AIIABF Option Conversion into Common Shares
According to the company update filed on 2 July 2026, 145,000 unquoted options with the ASX code AIIABF were converted into an equal number of Almonty Industries common shares (AIIAA). The conversion was completed on 1 July 2026, one day prior to the regulatory filing. These options carried an exercise price of CAD 2.835 and had a scheduled expiry date of 4 March 2030, indicating the holder chose to exercise significantly before expiry.
The issued common shares resulting from this conversion rank equally with existing shares from the date of issue. This was a partial exercise, as 203,000 AIIABF options remain outstanding, suggesting further conversions could occur before the March 2030 expiry.
Almonty Industries' Share Capital Following the July 2026 Conversion
After issuing the 145,000 new common shares, the total common shares outstanding reached 283,390,444, as disclosed in Part 4 of the regulatory filing. This total includes all shares under the AIIAA security code. Additionally, Almonty maintains a quoted presence on the ASX via CHESS Depositary Interests (CDIs) under the ticker AII, with 4,714,407 CDIs currently on issue, each representing one common share.
The filing notes that the reported figures are automatically generated and may not fully reflect the company’s current issued capital if other filings are being processed simultaneously. Investors seeking precise capital structure details should consult the company’s latest official disclosures and financial statements. The identity of the option holder who exercised the options was not disclosed.
Non-Involvement of Key Management Personnel in the Option Exercise
As required by ASX Appendix 3G, the company confirmed that the exercised options were not held by key management personnel or their associates. This transparency is important as transactions involving key management are subject to enhanced disclosure and scrutiny under ASX Listing Rules and corporate governance standards.
Furthermore, the company stated that the options were not issued under an employee incentive scheme, distinguishing these from incentive-based options typically subject to vesting and performance conditions. The original issuance context—whether related to capital raising, debt arrangements, or other corporate actions—was not disclosed.
Almonty’s Broad Unquoted Securities Register and Outstanding Option Classes
The update highlights that Almonty maintains a diverse register of unquoted securities beyond the AIIABF options. As of the filing, there are at least 19 separate classes of unquoted securities, including multiple option series with exercise prices in both Canadian and Australian dollars, warrants, convertible debentures, and restricted share units.
Larger unquoted holdings include 3,531,252 restricted share units (AIIAAA), 800,004 convertible debentures (AIIAAZ), 366,664 options expiring June 2028 at CAD 1.305 (AIIAM), and 299,999 options expiring July 2029 at CAD 0.99 (AIIAAO). Notably, the AIIABH options comprise 150,000 options expiring 27 November 2030 with a higher exercise price of CAD 8.93. This extensive unquoted securities structure suggests ongoing potential for share issuances as options near expiry or are exercised early.
Significance of the CAD 2.835 Exercise Price and Early Conversion
The early exercise of AIIABF options at CAD 2.835 per share, nearly four years before expiry, may attract investor attention. Typically, early exercise occurs when the market price exceeds the exercise price by a sufficient margin or due to specific corporate considerations. The immediate impact on the share price was not publicly available at the time of reporting.
The company did not provide management commentary on the timing or the identity of the exercising party. Therefore, any interpretation of the motivations behind this early exercise remains speculative. What is confirmed is the addition of 145,000 common shares to Almonty’s capital structure as of 1 July 2026.
Almonty’s CDI Structure and ASX Quotation Details
Almonty Industries is a Canadian-incorporated company listed on the ASX via CHESS Depositary Interests (CDIs), which trade on a one-to-one basis with underlying common shares. As of the filing, 4,714,407 CDIs are quoted on the ASX under the ticker AII. The common shares themselves, including those issued through the recent option conversion, are unquoted on the ASX. The CDI structure allows Australian investors to access the stock.
This dual structure is common for Canadian companies listed on the ASX. Changes in total common shares do not automatically affect the number of ASX-quoted CDIs unless new CDIs are issued. The company did not specify whether the 145,000 new shares will be converted into CDIs for trading or remain unquoted. Investors should monitor future filings for updates.
Remaining AIIABF Options and Potential Future Conversions Before March 2030
With 203,000 AIIABF options still outstanding, further share issuances from this option class remain possible until the 4 March 2030 expiry. Exercise decisions will depend on factors such as Almonty’s share price relative to the CAD 2.835 exercise price and option holders’ strategic considerations.
If all remaining options are exercised, an additional 203,000 common shares would be issued. Although this is a small increase relative to the total share count exceeding 283 million, investors should consider the aggregate dilution potential from all outstanding unquoted securities, including restricted share units, convertible debentures, and other option classes. The company did not provide guidance on future option exercises.
Implications of the New Shares for Almonty’s Capital Structure
The issuance of 145,000 common shares via option conversion is a routine capital event for Almonty. However, cumulative option exercises and security conversions gradually increase the total share count, impacting earnings per share, net asset value per share, and dilution for existing shareholders. This recent exercise suggests at least one holder views the current period as favorable for converting AIIABF options.
Investors should also watch for other option classes nearing exercise or expiry. For example, 66,666 options under AIIAU expire on 24 August 2026 at CAD 1.47, just weeks after this filing. Any exercises or lapses of such options will trigger further regulatory notifications. Monitoring Almonty’s ongoing filings will provide updates on its evolving capital structure as these instruments approach expiry.
