Ann: Appendix 2A, page-5

unsure if you have figured out the answer somewhere else?

In the simplest terms, AT1 company had previously sold a 'contract' (called an 'option') during its ASX listing period (called IPO/pre-IPO) to some folks (professional investors, funds C-class execs, whoever)...these folks invested an non-refundable down payment to have the 'contract option' of buying a certain number of AT1 shares for a fixed price per share within X period of time.

So per the ann details,
- someone in the past paid X money to have the 'option' of purchasing 1m shares for $0.15625 per share, on or prior to 24 November 2020
= this ann means that investor choose to 'exercise' that previously purchased 'option' and now will pay 15.625c x 1m shares to own those 1m shares.
= which means, they now own 1m AT1 shares, bought for 15c+, which are now instantly worth 33c (today's share price)

The risk those folks took was paying a bunch of non-refundable money upfront, to a company that was planning to grow, just to have the future choice of purchasing shares for even more money....with the intention of either profit OR owning a below market price piece of a growth company.

In case the AT1 share price had remained at 20c after last 6mths...or maybe even dropped below 20c, then the investor has the choice of walking away and not purchasing the actual shares for 15c (but forfeiting their 'option' contract money..which would be less than actual purchase total, though still significant amt)

This type of investing is risky (as there is no guarantee the SP would have risen by the time the option 'expires') and thus reserved for professional/sophisticated investors + doesn't always need a prospectus/guarantee etc + needs a different level of due diligence performed by the investor to understand the company thoroughly + the company woos such investors as part of ASX listing process to gather funds quickly (by doing presentations to select groups/funds etc to share the plan, growth strategy, timelines etc)

In the end, AT1 made money from the options purchase and now gets additional share purchase funds (at 15c per share)..the investor, if lucky/correct with their investment, gets instant portfolio growth as the SP has risen.....the investor can now choose to sell those shares on the open ASX market or hold for further SP growth.

Similar 'options' can also be 'exercised' by the company to 'reward' execs/employees as part of their employee remuneration plan. Depending on the nature of the remuneration agreement, the employee may have already purchased/given the options as part of their salary package) OR the company using 'options' they kept in reserve to convert into shares and provide those as employee remuneration/rewards for performance goals.

FYI, the ASX has lots of free online info, short courses, definitions etc about thesen security options/ convertible securities/ quoted-unquoted securities etc.

Also there are hundreds of online investor info guides/websites. It just takes a bit of time to read/nut through it + read the ASX form line by line..

It makes sense once you read several anns, go through it page by page, see which answers are ticked for what result, reference the online material against it. Alternatively find a group of like minded newbies (like an investment club) to discuss stuff like this....can learn faster by pooling knowledge.