Those are the "Cannvalate' options.
Options issued to Cannvalate from 2-14c in exchange for them doing the four clinical trials for us.
It has a dual strategy of adding Cannvalate to our top holders, making them our current #1 largest shareholder aligning their interests with ours as Australia's number one distributor of medicinal cannabis. We sell our oils through them, so does current market leader Althea (AGH).
It was Cannvalate who really shot Althea into the stratosphere, they had around 300 patients or so when they got picked up by Cannvalate and went ballistic in growth shortly after. Now we are coming for their spot.
Secondly, its a massive cash injection which is better than a standard capital raise for a few reasons. One, as you might have noticed most of the $$$ is locked in higher target prices. Currently only the 6-14c oppies remain that expire Dec 2020. SP needs to be above 14c by Dec for easy conversion, albeit it is very possible that Sud/Cannvalate convert anyways as a show of faith if the timing is a bit off.
i.e If OSA Trial gets results in Jan 2021, Sud/Cannvalate may just convert all oppies anyways because they know come result date IHL SP will be well above 14c.
Also, those shares would land in the hands of sticky fingers in our #1 shareholder Cannvalate. They wont sell a cent, its Sud after all that is their Co-Founder and controls them. Can't be said about sophs in a CR, some will always flip.
Finally, they serve as a magnet for the SP. Those price points were chosen a year ago, and I think neither party would have accepted that deal if they didn't think it was likely that IHL SP would reach and exceed 14c by December 2020. On another note, full conversion of those options would make Cannvalate our first "substantial holder". The implications of this I think myself and other posters have speculated on in previous posts, connect the dots. There is a lot potentially in play here.
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