this is a good deal folks, page-33

Hi CEB2
I am only looking at the face value of what they have paid in today's announcement.

Investors have paid 7.5 cents and have been given free a 1/2 an option in PENOA. At the time of writing, PEN was trading at 7.8 cents and PENOA was at 5.0 cents. If PEN got down to 7.5 cents, then PENOA one would expect, would be at 4.7 cents.

The strike price, as you say, still remains 3 cents, but this has no bearing on the value of the price they picked up the shares for, taking into account the free ride of 2.35 cents for each share issued at 7.5 cents.

Another way to look at it is if the share price got down to 7.5 cents, and you were to buy 1/2 PENOA for every PEN you bought, you would be paying out a 7.5 cents + 2.35 cents for 1/2 an option = 9.85 cents. Investors have only paid 7.5 cents, and their 1/2 option is free. Both will have to pay 3 cents to exercise the option down the track.

Hope that makes sense?
Harriska