In a way, you're right, but the difference is that we are being given the chance @ 5 cents per share to buy the option to purchase shares at 80 cents in 2 years time if the share price is above 80 cents at that time.
If the SP has gone to say $1.50, you can convert your options and make an immediate profit of 70 cents per share. If the SP is less than 80 cents, you don't convert, and the exercise has cost you just 5 cents per option.
If you were to buy shares now at 85 cents, you'll make money if the SP goes up, but you'll lose however much the price has dropped if the SP goes down, so the downside risk would be greater.
I'm firmly of the opinion that this is a great deal for shareholders, and I'll certainly be taking up my options.
CPH Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
