Ann: ANS: Proposed $100m Placement & Strategic Investment in Sund, page-222

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The 2c options have a five year expiry suggesting it isnt reaching that price for some time if ever. Why would the note holders invest $200m by exercising these options to own only 29% of SDL (assume they would own 12b of 41.5b shares) when by nov 2019 SDL had no hope of paying the noteholders $132.9m so they would have ended up owning most of SDL.

unquoted

The reason is simple. If noteholders do not cancel the debts of 132 million in exchange of cash 50 million now and 2 million shares at 0.004 and 10 billion options at 0.020, nobody will be interested to finance the project. So noteholders have no choice except bearing the pain now for gaining better enterprise value in the future. Win win solution.