Ann: Significant resource uplift boosts Wiluna Uranium value, page-63

When a merger is completed the two companies that merged combine into a new entity. At that time, trading in the options of the previous entities will cease and all options on that security that were out-of-the-money will become worthless. Generally, this is determined by the very last closing price on that stock.

• a company is acquired at a higher price than the strike price, the holder can profit from the difference between the strike and the takeover price.
• If the strike price is higher than the market price or takeover price ever is, the option will expire worthless.