Sandstorm metal just diluted.

By sphereya, November 29, 2011

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Does anyone have a feel (Travis) how significant the dilution Sandstorm metal just enacted? It looks like a flat give away to ”employees”. This really smells. Any thoughts are appreciated.

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2 Comments on " Sandstorm metal just diluted."


Travis Johnson, Stock Gumshoe
Do you mean the options grant they just issued? Not terribly unusual, from my perspective — they have about 317 million shares outstanding, and this option grant is for about six million employee stock options and vests over (I think) five years, so that’s dilution of about 2%. I’m not particularly pleased that they did it when the price is so low, since that sets the exercise price of the options, but it’s not all that dilutive. In my view, this is generous but reasonable compensation for employees of a startup company, since the success or failure of Sandstorm Metals… Read more »
Travis Johnson, Stock Gumshoe

Just FYI, Sandstorm Gold issued options last week according to their employee stock option plan as well — also five year term, though slightly less potential dilution in Gold’s case (5.7 million options, they have about 330 million shares outstanding). Still fairly reasonable in my view.