Ann: Appendix 3G, page-10

I expect the employee options ALL have a "cashless conversion" opportunity ... so I doubt many will be exercised by the payment of the underlying option strike price.

How (I believe) it works ... say the SP is $1 at the time of conversion ... then a 25c option has a technical value of 75c ... so the employee owner of a 25c option will be issued THREE new shares for every FOUR 25c options they own. No cash changes hands. The options are valued via the Black Scholes formula.

https://www.mystockoptions.com/black-scholes.cfm

If I plug in the usual values RAC apply ... 2% risk free interest rate, 100% annual volatility and the 4 year expiry ... todays options allocated to our new Clinical Program Director are worth $537k based on the SP of 35c today. (Assuming the above and my calculations)

Personally - I agree and like this form of remuneration as it encourages share price growth and only benefits employees in that case. A great way to reward (great?) people when cash is limited.