Leaving aside the value that is created from being able to fund...

Leaving aside the value that is created from being able to fund additional research (this is where 99% of the value lies), what the option structure does is transfer value from future investors to current investors. Assuming the SP rises above the option price in the next couple of years, the current investors get to “buy” a stake in the future value of the company at a fixed price that they don’t have to pay for now and can refuse to pay for if the price at the conversion time is not high enough. If I gave you the right to buy a house at a fixed price in 10 years time that you could refuse for no cost if you wanted, then this “option” this has real value. If the house goes up in value you make money, if it goes down you walk away cost free.

The option structure really is a reward for those loyal shareholders that have hung in through the recent times. It is not the easiest way to raise funds, but it is in keeping with the Race ethos.