Option 1 Complete and option issue to pay off the short term...

Option 1
Complete and option issue to pay off the short term loans. Though they will need to extend the payment of the current loan. It will still need support of the major shareholders. they could exercise their options to provide the Co with more short term cash going to production all going well, then smaller shareholders could exercise to pay off primary debt.

Option 2
Would be to provide a link loan note on Preference Shares, which can be used to pay the Debt off. Cash flow used to buy the Preference Shares back. Interest on the Preference Shares to be paid either with % discount off Shares or Cash.

Instead of issuing shares, the Co could buy the shares on the market, if price is favourable

Just my thoughts, not investment advice