Option value

I'm not familiar with this company. My son holds shares and has just asked me about the option offer. I've read the prospectus and its basically a $.05 premium, for a $.80 strike price exercisable anytime in the next 2 years. Full conversion would result in a 33% dilution. Looking at the volatility of the share price over the last 12 months ($1.65 - $0.46) it seems like good value (knowing nothing about the underlying value of the company, its prospects, or the causes of the share price volatility. Difficult to estimate the impact of 33% dilution but it won't happen all at once and will have different probabilities at different share price levels. If you assumed 33% dilution of the company 12 months ago, the current price would be $.42 and range ($1.09 - $.30). Paying a $.05 premium for that volatility still seems like a good deal to me. Am I missing something? Thanks