Management options, page-2

They actually went to Drake, as part of a placement for $3.7M in Feb 2016 - coincidentally the share price was the same then as it is now. Mind you, the income prospects then were nil, whereas this year they maybe about the $8M mark, so I guess it is relative. If you calculate on a P/E of 20, they will need to have some $13M earnings to justify the strike price ...

At $2.25, you could say it's cheap, but I guess that's the deal they had to strike to get the funding. Since this isn't raised through brokers, they paid no commission to get the funds, so maybe it's made up for with that to a certain extent.