Your scenario around a possible strategy of selling the underlying stock at 4.5 cents and exercising the options, has some difficulties that I can see.
What also needs to be factored in is share dilution, new options, minus, options maturing on 24 May 2020 cancelled - equals options going forward or total number on the register.
To begin with lets say the institutional/professional investors each have an equal share of the 80 million new shares, that would mean they are under the substantial shareholder threshold of 5%, and in your scenario they could sell them without disclosure to the market.
However if they were to offload that many share in a short time frame the most likely effect, especially if AVZ were out of favour in the market, the share price might crash below 3.5 cents, thus nullifying the hypothetical strategy that you outlined as possible.
I don't see instos/profs investing just on the outside chance of scalping the options.
Best wishes to all, stay safe, we'll come out of this stronger.
DYOR
AVZ Price at posting:
4.8¢ Sentiment: Hold Disclosure: Held