$1.25 piggyback options

The topic of piggyback conversion got me thinking..

Come expiry next year, what would it take for people to convert their options, the obvious answer is that the options are in the money.

A better question is what would have to happen for people to NOT convert their options.

The piggyback options are only a small % of people's overall holdings. The company requires the funds to progress clinically. In terms of forecasted news, we obviously have MOA publication and presentation, updates on 39 molecules, updates on a host of preclinical data, potential regional licensing deal and potential updates on RC 220 trial.

From the above, the conclusion I come to as to why shareholders will NOT convert their options are:

- Negative RC220 results (however, we will likely not have a meaningful update by the time options expire)
- Macroeconomics factors that cause the options to be way out of the money

Given the above, and with emphasis that the piggyback options only represent a small portion of people's holdings, does it not make sense for shareholders to convert their options early? Many shareholders will likely convert them even if they are slightly out of the money come expiry, to protect their current holdings and avoid larger dilution.

A further benefit of converting early, if a regional deal is being discussed, it would somewhat be anchored to the current share price - if holders convert their options before the deal is finalised, RAC's increased cash position would be beneficial in negotiations. Further, the SP would likely not remain anchored around the options conversion price.

Another benefit, is it will assist RAC in progressing other activities, as JDP has mentioned, the patent clock is ticking..

Can someone tell me why converting early is not a good idea?