From my experience, usually when the options get converted they don't have a significant impact on the SP.
The reason for this is because the market already prices the option dilution into the overall market value of the company. With option dilution you need to account for new cash coming in.
When the options are well in the money, the options tend to lag a bit, (within ~10% of the SP). No idea why, but I think this may have to do with the conversion process, ie it takes around 5 to 7 business days to get them converted (send in form, cash received, someone to action the form and notify the market, etc)
If the SP stays in a healthy territory of say 5 - 6 cent for a period of time, I think you'll start to see regular conversion of the 2c options, the key reason for converting an option to shares is the value it provides, ie voting rights, dividends (if and when distributed), and other minor protections when in liquidation.
Lets assumed the 10c options which are due later this year (i think), and the SP is hovering around the 15c mark (there for a little while), the conversion of the 10c option will most likely be underwritten, in that a broker entity will ensure they all get converted. At expiry if one continued to hold the 10c options, but forgot to convert them via the due date, then the broker entity will underwrite them and convert them post expiry, and then probably sell them at discount to clients at say 13c, and making an instant 30% profit in a matter of days. Conversion underwritting notices usually get announced 30 days prior to expiry, but I have seen it happen as late as final trade day (which is typically 1 week prior to expiry).
DXN Price at posting:
2.3¢ Sentiment: Buy Disclosure: Held
