Ann: Proposed issue of securities - ORN, page-5

I cannot quite work this out. Whittle Consulting have done US$300K worth of consulting to ORN to be paid in shares at the nominal value of 3.6c (I assume their value when the work was commissioned?). Now they have finished their work, they are being paid ~12M shares with a current value of just US$200K? So they are out of pocket some US$100K? Their error in agreeing to be paid a fixed amount of shares rather than a fixed value of shares?