IMUOD, page-54

No idea what the chances are, but here is the PAA ann about there issue of options to expired option holders,

https://hotcopper.com.au/threads/ann-options-offer-to-existing-listed-option-holders.7641934/




All in my opinion and not advice in anyway, this might be a win win for the company and SHs.

The case for it potentially could be?:

• securing two tranches of capital (first is buying new options at very low price, second is their potential future conversion) versus no capital (lapsed OD options).
• very low cost, low hassle capital. You don't have to go out and seek further diluting capital at a high cost. It's there already, you just need to enable it to stick around by extending the expiry (new options), and to be exercised via lower strike price.
• Significant goodwill in the market for considering and looking after SHs, and recognising the long term support they have invested in the business.
• Further extension of runway via new option conversion (which would very likely be at a much lower strike price).
• The ODs are already factored into a fully excised SOI, so no further dilution. Raising new capital, even if it was a similar amount of options, would incur additional cost. And greater dilution as, based on previous raises, their might be free options and heads offered at a discount.
• Could possibly avoid any downward pressure on the SP by offers at a discount to VWAP that might occur in the case of a CR.

Going on the PAA example, they achieved a 93% uptake of the new options, so very effective.

This option is also made more relevant by the CEO's recent comments regarding data being released in the next 3, 6, 9 months that would get a lot of attention. Extending/reissuing them is effectively free money in that case. You wouldn't want to let the ODs expire and then release major data. It wouldn't make financial sense, aside from any responsibility and ethical arguments.

So, easy and cheap capital and good will in the market, why wouldn't you?

Just expressing my opinion on the matter, and not giving any advice. Do your own research.

GLTA.