Well so correct me if I'm wrong but my understanding is you are...

Well so correct me if I'm wrong but my understanding is you are buying shares at 7c and getting 1 option for every 2 shares.

Ergo 100k shares would give you 100k shares + 50k options with 10c exercise.

So really the shares are worth somewhere in the 6c range because the options value is greater than zero and you aren't paying for them. If the price goes above 10c the deal becomes better and better exponentially.

If it doesn't then you're just falling from higher than market.

For a bit of napkin maths to assess this lets assume you expect the price to go to 15c. You buy 100k shares at 7c for 7k so you make 8k profit, and you exercise your options for 5k (10cx50k) Aud, sell them for 7.5K (15c*50k). In this case you get a total profit of 10.5k. If you simply bought the same value on market you get 109k shares, so its objectively worse as selling for 15c you get 16406 AUD, or a 9.6k profit. For each increase in share price above the 10c purchase price the options deal gets better than market, the problem is you need to wait to be above 10c again before it breaks even on your investment. If the price doesent go above 10c for some substantial period of time you are just down compared to buying at 6.4c currently.

I personally think its a good deal and will be taking part.