Personas Social Announces Stock Option Grant and Cancellation

Personas Social Incorporated (TSXV: PRSN) has recently announced two key updates regarding its stock options, which are set to impact the company's capital structure, employee compensation strategy, and shareholder value. The company granted 24,992,800 stock options to its directors and officers, following the expiration of their previous unexercised options. These new options are exercisable at $0.05 per common share for a 5-year period and will vest immediately, subject to TSX Venture Exchange approval. Additionally, the company cancelled 1,275,000 incentive stock options that were previously issued to certain employees who have since resigned. These cancelled options had an exercise price of $0.10 per common share and were originally set to expire on August 29, 2027.



The grant of 24,992,800 stock options to directors and officers impacts the company's capital structure and shareholder dilution in several ways. If all the options are exercised, the number of shares outstanding will increase by 24,992,800, diluting the ownership percentage of existing shareholders. This potential increase in shares outstanding could also impact the company's earnings per share (EPS), as earnings would be spread across more shares. However, if the company's earnings grow at a faster rate than the increase in shares, the impact on EPS may be minimal or even positive. The grant of stock options can also introduce additional volatility to the company's share price, as the exercise of options can increase the supply of shares in the market.

The cancellation of 1,275,000 incentive stock options is expected to have a positive impact on the company's earnings and share price. The cancellation of these options reduces the number of shares that could potentially be issued, which in turn reduces the dilution of existing shareholders' ownership. This can lead to an increase in earnings per share (EPS) as the same amount of earnings is now spread over fewer shares. The cancellation of these options can also lead to an increase in the company's share price, as the demand for shares remains the same, but the supply has decreased.