Ann: Financing Facility, page-146

They make the 585k as a sign on fee. They get the options but to exercise both lots would mean paying BRN $13mil. This would sure delay BRN needing to draw down on any part of 29m. The options aren’t free shares. Just the option to buy shares at a great price and potentially a massive discount to the market depending on the share price at the time.

In a few months/years though they could be a very lucrative thing for LDA to convert. If the share price was 30-35c they could get a 100% return on them. Pay 13m to BRN, sell for 26c on the market. Like previously mentioned, If they tried to sell all at once it would make the price plummet so I’d imagine they would gradually sell down when the share price is at a juicy premium.

The also get the 10% discount in shares issued under the 29m draw down. So BRN draws downs, issues the shares at the 10% discount and LDA can sell on market if they please. When they convert options of sell any shares issued is up to LDA and they will aim to maximise their return.

The contract can be super beneficial to both parties if the announcements, share price and timing of draw downs is used strategically. It could result in minimal dilution and a great return for shareholders (LDA included).

at least how I understand it.