Ynvisible Interactive Inc. (TSXV: YNV, OTCQB: YNVYF) has recently granted stock options to certain employees, consultants, directors, and officers, totaling 1,015,000 common shares. This move is a strategic decision that aligns with the company's long-term goals and growth prospects, and it has the potential to benefit both employees and shareholders. Let's dive into the details and explore the potential impact of these stock options on Ynvisible's share price and market capitalization, as well as their influence on employee motivation and retention.
Potential Impact on Share Price and Market Capitalization
The issuance of new shares upon exercise of these options will increase the number of outstanding shares, which can lead to dilution of existing shareholders' ownership and potential decrease in the share price. However, the extent of dilution depends on the exercise price and the market price of the shares at the time of exercise. If the options are exercised and the share price increases, it can lead to a higher market capitalization for Ynvisible.
To illustrate the potential impact, let's assume the following scenario:
* Ynvisible's current share price is $0.25.
* All 1,015,000 options are exercised at their respective exercise prices ($0.15 and $0.20).
* The new shares are issued at the current market price of $0.25.
In this scenario, the total number of new shares issued would be 1,015,000. Assuming the current market capitalization is based on the current share price and outstanding shares, the new market capitalization would be:
New market capitalization = (Current share price + New shares issued) * (Current outstanding shares + New shares issued)
= ($0.25 + $0.25) * (Current outstanding shares + 1,015,000)
= $0.50 * (Current outstanding shares + 1,015,000)
This calculation shows that the new market capitalization would be higher than the current market capitalization, assuming all options are exercised at the current market price. However, the actual impact on the share price and market capitalization would depend on various factors, such as the exercise price, market conditions, and the number of shares outstanding at the time of exercise.
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