I think the point is that although in your suggested scenario...

I think the point is that although in your suggested scenario you'd have DMN for the price of 0.6c when you can sell them for 5c a share.

But then I have to ask, why not buy DMN straight up *right now* for 0.4c per share! ... Then when they sell for 5c you'll be up even more, surely?

The *only* think buying options makes sense for at these price levels of DMN and DMNOx is if you intend to sell the options before converting them. Otherwise you lose your leverage.