The B options are seperate to the tranche 3 note itself.
When we first drew down tranche 3 (took the money), we issued the note for $3mil PLUS we issued the B options. The exercise price for the options was 130% of the previous days SP (11.7c). The options expire in Sept 2020, so they have until then to use them.
The tranche 3 note itself was valued at $3mil, which they can convert into shares as they/when they desire. When they do, the conversion price for each batch is the lowest VWAP in the last 20 days. Yesterday they converted $200k of tranche 3, and their conversion price was about 8c. Selling these into mid/high 9’s is a tidy profit while the 11.7c options sit in their back pocket for later when the SP is much higher.
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