When you convert your options to heads, it's considered a new Capital event. So the 12 months you need to wait before you can qualify for the 50% Capital gains discount starts from the date you converted, not the date you bought the options.
If you sell the options without converting, the date you bought them is used for determine the the 12 month period.
Groins (I'm guessing) doesn't want to convert later then wait a further 12 months to qualify.
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