Forum Archive Index - September 2001

["Brad Rossi" <brad_rossi@hotmail.com>]

I share the optimism regarding Ebet's future, but am concerned about 
(amongst other things) the exorbitant granting of stock options to the board 
of directors. 11 million just recently! They will, if converted, seriously 
dilute the shareholding that the rest of us hold. This time last year there 
were 4 million options granted (many will have expired by now). I shudder to 
think how many option warrants they will grant themselves when the company 
actually turns a profit. Keith Cullen, the managing director, already pulls 
in a nearly $300K salary, and is the largest beneficiary of the option 
issues - all whilst running a company that increased its losses by 89% this 
financial year.

It took me quite some time to determine the complete amounts, exercise 
prices, and final dates for exercising the options, from the 2000 annual 
report. The information on them was spread throughout the report rather than 
as a complete list. I can only surmise they are quite happy for the 
information to be difficult to collate (although i have as yet not checked 
other Australian annual reports to see how other companies report their 
options).

I am unsure of my commitment to this company given the above.

Silverfox

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