Ann: Application for quotation of securities - MNS, page-5

Yep, that is exactly what has happened.

There aren't a whole lot of reasons for this, though the following could be the case.

The one I think is most likely is that Magnis is due to require funds for a major investment decision. As a result, they have approached option holders to convert in order to fund the investment.

This effectively allows those option holders to gain equity and avoid a capital raise (which will further dilute their holdings).

Capital Raises can at times be paid at a premium (though more often a premium comes in when it is a cornerstone investor wishing to take a large ownership stake).

So, they have effectively paid a premium of about 7-9% in order to retain their expected ownership (as opposed to a CR dilution) and to provide funds directly to the company to allow further development.

This of course, is opposed to buying on Market where they would have been able to gain a greater stake/shareholding, though funds would have just traded hands between investors rather than becoming available to the company, restricting the company's growth and exposing your large ownership stake to CR Dilution in the future.