Let me explain how this type of cashless conversion works in...

Let me explain how this type of cashless conversion works in easiest way.

Let 500k option with $10 conversion price.

Price hits $15.
Conversion cost = 500k x $10 = $5 mil
Share value = 500k x $15 = $7.5 mil
The would be profit = $7.5 mil - $5 mil = $2.5 mil
So shares worth of $2.5 mil gets issued at nil cost, Share issue = $2.5 mil / $15 = 166k with nil outlay.

Similarly if price hits say $20
Share issue at nil cost = (500k x $20 - 500k x $10)/$20 = 250k and so on.

Higher the price, higher the number of shares issued at nil cost.

Any pumped price will be good time for directors to convert as the conversion done and shares issued, it doesn’t matter if the price drops back to the pre-pump price.