Deepp,if you do convert options the capital gains cost base of...

Deepp,
if you do convert options the capital gains cost base of your "then" AVZ shares will be:
(i) the purchase price of the options, plus
(ii) the $0.03 option exercise price;
... for example if purchased 100,000 options on market for $0.05 cents each (=$5,000) and exercise them (pay additional $0.03 cents per option = $3,000) ... then the cost base of the issued AVZ shares will be $0.08 ($0.05 + $0.03) cents per "new" AVZ shares = $8,000.
The "deemed" purchase date of the "new" AVZ shares becomes 24 May 2020 (date AVZO options are converted to AVZ shares ... new asset creation date, and date AVZO options are purchased becomes irrelevant.
This being the case, and if you are an "investor" for CGT purposes, it means that you will not get the 50% 12 month CGT concession (reduction) is AVZ shares are sold before 24 May 2021 ... and would have to pay CGT of full gain / profit if sold before 24 May 2021.
I suspect, that you like myself will be a long term holder, and hence if you sell "new" AVZ shares after 24 May 2021, you will only pay CGT on 50% of your gain / profit after reducing the capital gain by the 12 month 50% capital gain concession/ reduction.
Hope this answers your question and should you need any further clarification please advise.
Kind regards,
Zippy1