Ann: Options Prospectus, page-38

Not flaming here jj
708 (sophisticated) investors = wealthy investors, subscribed to a share issue some time ago, not available to non 708, basically because a formal Prospectus is not issued. (Prospectuses costs are big money and TIME). Normal retail investors cannot be offered shares without a full disclosure document = a prospectus). Because of the savings, the 708s twist the togas on company management and get, a) a discount and b) a sweetener - like a free option to buy another share, at a later date, at a fixed price.
If the share price goes 'ape shit' they get a cheap entry. If the share price does nothing, the options are worth nothing on the 'Exercise Date' and they expire. My experience is a lot of options dud out. Having said that I do know of some stunning arbitrage trades (Not XTC) that warmed the heart - but that is far more complex.
Some XTC options can currently be bought and sold; see ASX:XCTO.
Some options cannot be traded, just one example, performance Options for management.
In the case at present, the Options issued to the 708s were 'not tradeable'. The 708s could pay the exercise price and convert each option in to an Ordinary Share = ASX:XTC and only then trade that.
Purely my guess, the 708s have been watching XTCOs trading .07 cents and .08 cents and see their June 24 Oppies untradeable. Some negotiations took place and the management decided this is not in the best interest of the company. So they are cancelling the non-tradeable options and re-issuing them as tradeable.
NOW, before the retail investors get all 'That's not fair': 708s provide access to very quick cash, without a prospectus and, as I said a big cost saving. Imagine a land holder offers his land, right next door but wants a deal done. In a lot of cases cash from 708s is the winning hand, often due to time constraints
Hope that helps
regs
lemons