Annual Report & Accounts 2006 - Notes To The Financial Statements
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2006
Eden Research plc issued warrants to third parties for the provision of services rendered and the provision of
finance.
2006
Weighted
average
exercise price
(pence) number
Outstanding at the beginning of the year 33 900,000
Granted during the year 19 4,669,565
21 5,569,565
The exercise price of warrants outstanding at the end of the year ranged between 10p and 37p and their weighted
average contractual life was 2.2 years.
The weighted average share price (at the date of exercise) of warrants exercised during the year was £nil.
The weighted average fair value of each warrant granted during the year was 12p.
The following information is relevant in the determination of the fair value of warrants granted during the year by
Eden Research plc:
2006
Equity-settled
Option pricing model used Black Scholes
Weighted average share price at grant date (pence) 23
Exercise price (pence) 21
Weighted average contractual life (days) 1,168
Equity-settled
Expected volatility 73.6%
Expected dividend growth rate –
Risk-free interest rate 4.43
The volatility assumption, measured at the standard deviation of expected share price returns is based on a
statistical analysis of daily share prices over the 4 years.
