FRONTLINE COVER FA 070606 CR2.indd

frontline technologies corporation ltd
annual report 2006 43
> directors’ report
5. Share options (cont’d)
Movement in the number of share options outstanding are as follows:
Options
As at 28 January 2002 104,860,000
Cancellation during the year (13,600,000)
As at 31 March 2002 91,260,000
Cancellation during the year (15,596,000)
As at 31 March 2003 75,664,000
Cancellation during the year (27,893,000)
As at 31 March 2004 47,771,000
Cancellation during the year (5,298,000)
As at 31 March 2005 42,473,000
Cancellation during the year (9,250,000)
As at 31 March 2006 33,223,000
As at 31 March 2006, no options have been granted to directors of the Company, controlling shareholders of the
Company or associates of the Company and no employees have received 5% or more of the total options available
under the Scheme.
The options under the Scheme do not entitle the holder to participate in any share issue of any other corporation by
virtue of the option. As at 31 March 2006, no options have been exercised under this Scheme in the Group.
Convertible bonds
Pursuant to a subscription agreement dated 12 September 2002 among the Company, PLE Investment Pte Ltd (“PLEI”)
and a subsidiary, FTI Ventures Pte Ltd (“FTIV”), FTIV issued 1,375,000 convertible bonds at $1 each to the Company and
PLEI, who took up 60% and 40% respectively.
On 3 January 2005, the Company acquired 2 ordinary shares of $1.00 each and 550,000 convertible bonds owned by
PLEI in the capital of FTIV for a consideration of S$110,607.00. As a result of this acquisition, FTIV became a whollyowned
subsidiary of the Company. Accordingly, PLEI ceases to have any rights over FTIV, including exercises of
options, and the Company has acquired all rights over all the convertible bonds of FTIV.
On 8 June 2005, the Company converted the convertible bonds in FTIV into ordinary shares of $1.00 each.