European Lithium Extends Option Life with Director-Backed Replacement Offer
European Lithium Limited is set to expire over 211 million options next month but offers a new replacement options plan with director underwriting, extending exercise rights into 2026.
- 211 million quoted options expiring 14 November 2025
- Replacement Options Offer at $0.002 per option exercisable at $0.08 until December 2026
- Directors intend full participation and underwriting of the offer
- Shareholder approval required at November AGM for director-related issuance
- Offer open to Australian and New Zealand registered option holders
Expiry of Existing Options
European Lithium Limited (ASX – EUR) has announced the impending expiry of 211,021,965 quoted options exercisable at $0.08, set to lapse on 14 November 2025. Optionholders must exercise these options by the expiry date to avoid losing their value, with official trading of these options ceasing on the same day.
Introduction of Replacement Options Offer
To provide continuity and maintain shareholder engagement, the company is launching a Replacement Options Offer. Eligible holders registered in Australia and New Zealand as of 10 October 2025 can apply for one new option for every existing option held, at a nominal issue price of $0.002 per new option. These new options will retain the original exercise price of $0.08 but extend the expiry to 31 December 2026, effectively granting holders an additional year to exercise.
Director Participation and Underwriting
Notably, the company’s directors, Tony Sage, Malcolm Day, Mykhailo Zhernov, and Michael Carter, have committed to fully participate in the offer, collectively applying for over 41 million new options. Furthermore, they have agreed to underwrite the offer equally, each covering up to 25% of any shortfall, which could mean issuing up to 52 million options each if the offer is undersubscribed. This director backing signals confidence in the company’s prospects but also raises questions about potential dilution.
Regulatory and Shareholder Approval
The issuance of new options under director participation and underwriting is contingent on shareholder approval at the upcoming annual general meeting scheduled for November 2025. The company plans to lodge a prospectus with ASIC and apply for quotation of the new options on the ASX, ensuring transparency and regulatory compliance. The timetable for the offer is indicative and subject to change, with the offer opening on 14 October and closing on 22 October 2025.
Implications for Investors
This replacement offer provides existing optionholders with an opportunity to maintain their exposure to European Lithium’s equity at a low entry cost, while extending the timeframe to capitalise on potential share price appreciation. However, the underwriting commitment by directors and the potential for significant new option issuance could impact share dilution and market dynamics. Investors will be watching closely for shareholder approval outcomes and subscription levels to gauge the company’s capital structure moving forward.
Bottom Line?
European Lithium’s replacement options offer extends investor opportunity but hinges on shareholder approval and subscription uptake.
Questions in the middle?
- Will shareholders approve the director underwriting at the November AGM?
- How many existing optionholders will participate in the replacement offer?
- What impact will the new options issuance have on share dilution and market sentiment?
