In other words, lets say:If you own 40k shares.... you will be...

In other words, lets say:
If you own 40k shares.... you will be granted 5000 loyalty options.

These will NOT be ordinary shares, they will have an exercise price of 55c in twelve months time.
At that point, you have the option to buy the shares to convert them to ordinary shares (costing 55cents each)
By that time, (please) the shareprice should be well above this value, making it a very profitable purchase.
If in the meantime, the shareprice rises dramatically, so should the option price, tempting some to sell their options early on market.

Just be careful not to get caught holding options that pass their expiry date without converting them! They become worthless