Ann: Appendix 2A, page-13

you buy the option for x and then if you choose to you can take out you option with the company by paying 2c per option to convert it to a share.

eg 100,000 options bought at 10c is $10,000 but then you will need a further 2c per option of $2,000 to convert to a share. If you do you now own 100,000 shares with a total investment of $12,000 or 12c each.

The price of the option can vary based on market conditions but the option strike price will remain constant (although not all options are 2c strike but it is with Em1o).

So if the SP is 8 or 9c and then you pay the 2c to strike the total investment is 10-11c so you could either choose to hold onto the share or sell for 1-2c profit.

Reason I would say they are flippers is because they still have 6 months left on them so there is no reason to take up the option unless looking at selling as you are putting additional capital in now that isn’t required until closer to the date and you can in theory get a better return just selling the option as is (if everything is neat and matched).

This is because say the SP doubles tomorrow from 12 to 24c you have made a 100% gain but if the option went from 10c to 22c (keeping 24c total price) you have made 120% return.

This is not financial advice as some people accuse me of giving but rather my opinion and best to dyor research but better seek independent financial advice..