Issuing options to advisors and the underwriter in addition to...

Issuing options to advisors and the underwriter in addition to the fee of 5% that the under writer received. Well played Management!

Are they acting in the owners (shareholders) best interests by doing this?

Per the FY16 Annual report at page 32 the CEO's total remuneration package was c.$460k in FY16.

Per the 19 of July 2017 announcement, the CEO took up his rights under the rights issue subscribing for 112,638 shares or c.$ 5k worth of stock, in a rights issue that experienced a significant shortfall.

Just to be clear, you the shareholders are paying his package worth $460k (This is a micro-cap company!)
and he subscribes for $5k worth of shares in a rights issue with a c.40% shortfall.

Does this indicate that he has faith in the future prospects of the company?
Does he have significant skin in the game?

The technology has wonderful potential - but in my opinion this management team is not adequately aligned with shareholders interests, and they have failed to adequately exploit the technology over the last 24 months.

This management team has to go, before there is nothing left to salvage. Bring on the AGM!!