Analysis of the Impact of Berkeley Energia's Option Exercise Share Issuance on Equity Structure and Stock Price

Berkeley Energia announced on December 24, 2025, the issuance of 496,428 ordinary shares through a cashless exercise mechanism to exercise 2,000,000 unlisted options [1]. After the issuance, the company’s total share capital increased from 445,796,715 shares before exercise to 446,293,143 shares [0]. Calculations show that the dilution ratio for existing shareholders from this issuance is approximately 0.11%, which is an extremely low dilution level and has a negligible impact on the equity structure [0].

From the stock price performance perspective: On December 24, 2025, the company’s closing stock price was A$0.55, a decrease of 1.79% from the previous trading day [0]. However, the trading volume on that day was only 65,280 shares, far below the average level of the previous two days, and it was during the thin trading period before the Christmas holiday. Therefore, this stock price fluctuation is more likely related to the overall market sentiment and low trading volume, rather than the extremely low proportion of dilution [0].

1. The equity dilution ratio this time is extremely low (about 0.11%), which is not sufficient to have a substantial impact on the shareholding ratio of existing shareholders, and the stability of the equity structure is maintained [0].
2. The stock price fluctuation on the day of the announcement was mainly driven by external market factors (thin holiday trading, low volume), and its correlation with the dilution event itself is weak [0].
3. The remaining two types of unlisted options (7.6 million shares with an exercise price of A$0.65, 3.3 million shares with an exercise price of A$0.80) are all out-of-the-money (current stock price A$0.55), so there is no exercise risk in the short term, and no further dilution pressure for the time being [0].

• Risk
  : If the company’s stock price rises above A$0.65 or A$0.80 in the future, the remaining options may be exercised, leading to further dilution [0].
• Opportunity
  : The extremely low current dilution ratio avoids negative impacts on the equity structure and stock price, and the company’s equity base remains stable [0].
• Priority
  : Short-term risks are controllable; long-term risks need to focus on the trend of stock price changes.

The event of Berkeley Energia issuing shares due to option exercise has a minimal impact on the dilution of the equity structure (about 0.11%). The slight drop in stock price is mainly driven by market environment factors and has little to do with the dilution itself. The remaining options are currently out-of-the-money, so there is no risk of further dilution in the short term. Overall, the event has limited impact on the company.