Answer Overview
The options grant represents 985,000 options to purchase common shares at $0.40 each.
To express how large this grant is relative to the company’s fully‑diluted share count (the total number of shares that would exist if all existing securities that can be converted into common equity – e.g., options, warrants, convertible debt, etc. – were exercised), we need two numbers:
| Item | Value |
|---|---|
| Number of options granted | 985,000 |
| Fully‑diluted share count | X (the total number of common shares that would be outstanding on a fully‑diluted basis) |
The percentage is simply:
[
\text{Percentage of fully‑diluted shares represented by the options} =
\frac{985{,}000}{X}\times 100\%
]
1. How to obtain the fully‑diluted share count for Fredonia Mining Inc.
Locate the most recent filing – The company’s quarterly or annual report (Form 10‑K, 10‑Q, or the Canadian equivalent filed on SEDAR) will list:
- “Weighted‑average shares outstanding” (basic shares)
- “Weighted‑average fully‑diluted shares outstanding” (basic + all dilutive securities)
Identify any other dilutive securities – Apart from the newly‑granted options, Fredonia may already have:
- Previously‑granted stock options or warrants
- Convertible preferred shares or debentures
- Restricted stock awards that are exercisable in the future
Calculate the fully‑diluted total – If the filing already provides a “fully‑diluted share count,” use that number directly.
If only the basic share count is disclosed, you must add the in‑the‑money portion of all outstanding options/warrants (i.e., the number of shares that would be issued if each option were exercised at its strike price) to the basic count.
Typical place to find the figure – In the “Capital Stock” or “Share Capital” section of the SEDAR filing, often presented as a table titled “Capital Stock – Basic and Diluted”.
2. Example Calculations (illustrative only)
| Assumed Fully‑Diluted Share Count (X) | Calculation | Result |
|---|---|---|
| 10,000,000 (typical for a junior TSXV miner) | (\frac{985{,}000}{10{,}000{,}000}\times100) | 9.85 % |
| 12,500,000 (if the company already has 11.5 M basic + 1 M other options) | (\frac{985{,}000}{12{,}500{,}000}\times100) | 7.88 % |
| 8,000,000 (if the company is very small) | (\frac{985{,}000}{8{,}000{,}000}\times100) | 12.31 % |
The actual percentage will fall somewhere in this range, depending on the true fully‑diluted share count disclosed by Fredonia Mining Inc.
3. How to report the answer to the question
Because the news release does not disclose the current fully‑diluted share count, the exact percentage cannot be calculated from the information provided alone. The correct approach is:
- State the required formula (as shown above).
- Explain where to obtain the missing denominator (X) – i.e., the latest SEDAR filing or the “Capital Stock – Fully Diluted” line in the company’s most recent financial statements.
- Provide a range of possible outcomes based on typical share‑count sizes for a TSXV‑listed miner, while emphasizing that the precise figure will be known only after retrieving X from the filing.
4. Suggested next steps for the asker
- Visit SEDAR (www.sedar.com) and search for “Fredonia Mining Inc.” → locate the most recent “Annual Report” or “Quarterly Report” (e.g., “Form 10‑K” or “Form 10‑Q”).
- In the report, find the table titled “Capital Stock – Basic and Diluted” (or a similar heading).
- Note the “Weighted‑average fully‑diluted shares outstanding” figure.
- Plug that number into the formula:
[
\text{% of fully‑diluted shares} = \frac{985{,}000}{\text{Fully‑Diluted Shares}} \times 100\%
]
- If you need a quick estimate now, you can use the illustrative calculations above (e.g., 9.85 % if the fully‑diluted count is ~10 M).
5. Bottom‑line answer (given the data we have)
Without the company’s current fully‑diluted share count, the exact percentage cannot be determined from the press release alone.
The percentage is calculated as 985,000 ÷ (fully‑diluted share count) × 100 %. Once the fully‑diluted share count is retrieved from Fredonia Mining Inc.’s latest filing, you can apply this formula to obtain the precise figure.
If you locate the fully‑diluted share count (e.g., 10,000,000), the options would represent ≈ 9.85 % of the fully‑diluted equity.