Running discussion on SP, page-15804

Ah no. That isn't how it worked at all.

They participated in a raise mid 2017 for $13m in order to obtain 186m shares at 7c and 186m options with a strike price of 10c. They haven't paid anything on the options.

Their share holding is under water by $5.75m.

If they exercised their options they would be paying $18.6m for something worth $7.25m. So your last point is correct, why would they exercise their options.