Ann: Options Entitlement Issue, page-47

No, I think you can get a max of 1 option for every 2 shares held at the record date. And yes, the purchase price will be 80 cents if you decide to go ahead (i.e. if you exercise your option).

However, either way, you have to pay 5 cents a share upfront to gain that option, which you may or may not ever exercise. It depends entirely on the actual SP in 2 years time.

If the SP is well above 80 cents, you will exercise the option and make a paper profit until you sell. If the SP is in the low teens, as I predict by then, the option will be worthless and you will have lost 5 cents for each share option purchased.

Hope that helps