The options dont go back to the company, they are expired, ie...

The options dont go back to the company, they are expired, ie they no longer exist.

This doesnt reduce the amount of shares on issue, they never became shares, they only become shares if they are excercised.

The positive is now there is not an overhang of dilution when the share price gets above the excercise price, 1.9 billion shares is a huge overhang , and if excercised would have diluted the company by about 40%. Its a huge positive in that sense, also negative in the sense that the company is not going to get the money from options being excercised, so most probably will push forward the need to do a capital raise.