Ann: App 2A - Application for Quotation on Exercise of Options, page-14

"So you agree that options are COST. Obviously not the actual cash cost but it is the cost to the company on the books." – agreed, although I will not agree that it has any impact on the company's ability to trade. The cost is capitalised, which leads into your next point...

"Also you agree that every additional shares issued dilute the shareholder value" – also agreed.

"CNW granted way too many options and that is also significantly lower price (1.7c) then actual price (3c)" – This is not quite right. The options were granted on 22-Apr-2020 at a time when the share price was around 2c. So you are correct to say the the options were already in the money when they were granted, which is unusual. But think about the date... it was a seriously unusual time! Here is a little context:

1. The potential impact of the global pandemic had hit home: dead people piling up in the streets of New York, international trade stopped, and no sign of how or even whether the situation could be controlled.
2. The share price of CNW had slumped from a steady range centred around 4c to a low of 1.4c and again nobody knew what the future had in store.
3. The Federal Government was yet to announce Jobkeeper or the Jobseeker supplement, or anything like a coherent economic or health management plan.

So it is reasonable to assume that critically important staff were considering their alternatives to protect themselves, their families and their wealth. These options were granted on a one-off basis – never done before, and not repeated since – as a way to keep these people on board. This is clear from the vesting dates of these options: 30-Sep-2020 and 30-Nov-2020. The board was saying to these staff "hang in there, stick with us and see it through, and if the company survives there'll be a profit in it for you for helping us make it".

So now these people are collecting their rewards, and in the process tipping in some valuable cash. It's win/win situation for the company, and a cheap win for you as a shareholder. If the board had not retained these people then there's every possibility that your undiluted holding would be worth less than the 3c you currently enjoy... possibly considerably less... possibly nothing at all.

I'm going to take this opportunity to bow out again now. I'm an ex-holder who checks in from time to time to see if I might chance my hand again. I didn't intend to get hooked into a deep, time-consuming discussion involving hours of research.