"Exercise PeriodThe Options will vest immediately and are...

"Exercise Period
The Options will vest immediately and are exercisable at any time after the date of their issue and prior to the Expiry Date (Exercise Period)."

Issue date being 1 September 2023.

Difficult to get a complete read on this. The terms seem very generous to Regal, and costly to BTH and indirectly the (possibly diluted) shareholders of BTH.

12% Interest; Plus initial costs of 4% for the capital raising fee; Plus 2% as a management fee; Plus 25M free Options (with exercise price discounted in current share market terms). On top of that, they prospectively score big time if a Change of Control transaction occurred, particularly if this happened sooner rather than later. What a gift for Regal should that emerge!

I wonder, that if the company had such an urgent need to fund business development costs, why didn't they put it through as a Capital Raising proposal to existing shareholders, or alternatively seek a Bank Loan facility. I, for one, am happy to put in additional capital if the company puts a reasonable business case in front of us and dilution is minimised.

I guess that, if Regal exercises the Options early, and pump in more cash that the business can obviously use, then maybe that is a reasonable outcome - if no change of control event happens. Otherwise, if they exercise the Options at the end of the two year term, that could provide cash for the company to potentially repay part of the Loan when it becomes due.

It wouldn't be good if they exercise the Options early, and the sell the resultant shares into "a rising" BTH share price. That could be like smothering the BTH market price with a wet blanket!