question, page-7

noellyn has already given you the reference.

Exercising the options pre-consolidation or post consolidation makes no difference to the cash involved.

Either way 4M x 0.05 or 800K x 0.25 = $200K
He can exercise the options now if he wants to.

The things is that they don't pay for the options they are given to them.
If they perform and share price rockets they can easily take a large profit in a very short period of time. They don't have to exercise all of them at once.
If they don't perform and the share price stagnates or falls then big deal, they don't have to spend any money to exercise them and why would they, they owe nothing.

Two more things.

If the options have an expiry date then it is in their interest to make sure they perform. The last thing they want is for the options to expire worthless. I hope his options have an expiry date.

Consolidation can also result, and often does, in reduced trading liquidity. No longer do we have the punters buying 100K shares @ 0.20 for $20K.
100K shares will now cost $100K.
Holding large amounts of options post-consolidation can be diffcult to get rid of in one lump so you often see them exercised in smaller parcels.

Finally, there is no reference in your extract regarding the treatment of options under consolidation.