Let's see if IFFCO REALLY steps up to the plate!!

Developing phosphate interests in the Georgina Basin, Queensland, Australia

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bigphos

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Let's see if IFFCO REALLY steps up to the plate!!

posted on Jul 09, 2009 09:09AM

The following is IFFCO's option agreement with Legend:

Effective as of July 14, 2008 the Issuer entered into a Share Options Agreement (the “Agreement”) with IFFCO under which IFFCO received options to purchase, directly or through its affiliates, 30 million shares of Common Stock of the Company on the following terms:

5,000,000 options, at an exercise price of $2.50 per share and expiring 60 days from the closing;

8,000,000 options, at an exercise price of $3.00 per share and expiring 12 months from the closing;

8,000,000 options, at an exercise price of $3.50 per share and expiring 18 months from the closing;

9,000,000 options, at an exercise price of $4.00 per share and expiring 24 months from the closing.

On August 7,2008 IFFCO exercised 5 million options at $2.50 per share. The stock price at the time was about $2.12

On July 14, 2009 IFFCO's option to purchase 8 million more shares at $3.00 expires.

We all know that IFFCO has been buying millions of shares in the open market in the 50- 60 cent range. So while it is extremely doubtful that IFFCO would exercise these options next week, maybe they will instead get more aggressive in the open market and take this stock higher.

(But it sure would be nice(but very foolish) if by chance they did exercise these options way out of the money.)

Personally speaking, although the company receives no money from open market transactions, I prefer IFFCO to keeping upping their bid price in the open market and reduce the float on this stock. I'm sure they could shake out a lot of weak shareholders if they started buying aggressively and took this up to the $1.00-$1.50 range.