Ann: Options Entitlement Issue, page-57

Yes, you're essentially betting that the share price will be worth considerably more than 85 cents in the next 2 years, otherwise you would be better just to buy additional shares on market at the prevailing SP.

So, the question is: is the company's financial performance likely to be significantly better than it is now, which would support a higher SP? Or, is it likely to still be incurring significant operating losses, in which case the SP may be a lot lower than it is now.

Given the very long-lead times associated with most of their ventures, I think the answer to that last question is very clear.