worthless share options?

keva_kava

I was issued with share options when I started my job and now years later the company is being bought out by a multinational for a huge sum. However I've been told that my share options are worthless as the strike price is more than the actual share price because thousands more shares were issued a couple of years after I was issued with my options and so the price per share was greatly reduced.

I'm presuming (sadly) that this is correct and there's nothing I can do?

thx

Stonk

If it was purely the issue of new shares that has caused the drop in price, then your own stake has been diluted and they are indeed worth nothing.

However - and it doesn't doesn't like this has happened - if at any point the shares were repriced due to, say, a stock split, then your options should simultaneously have had their strike price adjusted accordingly.

But like I say, from what you write it sounds more like new issues.

keva_kava

the new shares were issued as a way of attracting new investment when the business was in trouble. I guess it doesn't matter now that it's most certainly not anymore, it's just disappointing as hints at their value 'come buyout day' were used as an incentive throughout my years at the company. I'm clueless about such things! Thanks again.

jonesMUFCforever

Is it a PLC or a private company?
Are the shares quoted on the stock exchange?

keva_kava

it's a private ltd - they can do what they want eh?

jonesMUFCforever

Looks like it - sorry!