Worst case scenario - if the oppies are in the money at...

Worst case scenario - if the oppies are in the money at expiration you'd sell enough BYE shares to cover the oppies. No cash decrease for increased shareholding. If they aren't in the money then there would be no point exercising. Amery is a finance guy with his head screwed on, so not too worried here. I don't imagine that they'll bring in a large enough player to enable payment of back costs. I think it fundamentally comes down to two potential paths:

1- SM74 is a success, cash flow comes in, MEL has enough cash to convert oppies.
2- SM74 is a failure and they liquidate some or all of the BYE holding to fund ongoing operations.

Any other scenario is ultimately just a slight variation - aside from a cap raise, which would be ludicrous unless they had a COE style transformational deal lined up.