Tauren, you are right that the company will be worth an extra...

Tauren, you are right that the company will be worth an extra $10m and its market cap will go up by $10m if the options are exercised. However, you then imply the share price will be higher as a result of this extra $10m. That is not correct. You are forgetting that the number of shares will go up from say 900m to 1,200m. In other words, pre-money at 900m * 3.4c = $30.6m market cap. the extra $10m makes the market cap at 3.4c = $40.6m. With 1,200m shares that's still 3.4c a share, as it should.

Also, to clarify, they did the options to raise money and not some smart forward thinking- back then I bet they thought the shares would be worth 10c by October 2016. They got about $600,000, not your $5,400, I think you are out by a factor of 100 as 300m options at 0.2c each is $600,000. As I said in my earlier post they had no alternative so I don't blame them. It's just the over -hang is the consequence now of that decision back then.