My understanding is if it reaches 3c holders of the options would be prepared to exercise. Whatever was paid for the option (if anything) is no longer relevant.
In practice at around 3c the co. would probably seek underwriters to get the options exercised, the underwriters would charge a fee for this which could be seen as a reduction of the 3c price to them. I was being very general as the poster appears to be relatively new to the stock.
Don't know if these comments will be provocative.
PEN Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
