The share price would need to be below $0.005 (as the options...

The share price would need to be below $0.005 (as the options have a strike price of $0.005) for them to expire worthless.

A CR under your proposed circumstance would be disastrous as it would be extremely dilutionary to existing holders... given CRs generally occur at discounts to the trading price.

No one will exercise their option if share price is under $0.005 - as you need pay $0.005 to receive one share (when you exercise the option).

If you can buy shares cheaper on market, the options become useless.

Hence why GMCO price = GMC price less $0.005

Out of interest, you mentioned a CR is likely - so am I correct in thinking that you don't believe DSO will be achieved ?? Interesting, that most here seem to share this sentiment...