What will happen to the share price when the options start being...

What will happen to the share price when the options start being exercised?

Due the the vast majority of options being traded at 2 pips or below alot of people who bought them will start converting these into heads when the share price is 2.2-2.3 cents, what exactly will this change in terms of the position LRS is in?

With more money in the bank they will be stronger as a company financially and be able to continue and expand operations without issuing a capital raise. Will all these new shares being issued dilute the existing pool and make current shares less valuable? Or are they transferring shares owned by LRS to the option converters leaving the quantity unchanged? If the latter is the case would it be expected to see a sharp jump to 2.5c+ when share holders realize how good this news is for them?