Catch the Wind Ltd. granted its management, employees and consultants 4.6 million stock options in late December. Two weeks later, all of them have been rescinded.
The move comes after the company's shareholders expressed their displeasure. Just a day before the options were offered, Catch the Wind closed an $8.7-million private placement of new common shares. Once exercised, the options would have diluted equity ownership.
There is more to the story. Catch the Wind has been on a big spending spree, which includes the purchase of a corporate jet. People on Bay Street say shareholders were getting a bit worried about the level of cash outlays. Rescinding the stock options means the message was heard.
Catch the Wind is a clean tech business that focuses on wind turbines. The company markets products that it says can produce more energy, as well as measure wind speed and direction more effectively.
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