The shares have to rise by a third to over 25 cps for the options to be in the money. The company certainly has an incentive to try to get them converted by Jan 2018 when the options expire, but they may need to declare a dividend and announce a dividend policy to achieve that (eg pay out 50% of NPAT as dividends). They have some franking credits available so they could certainly declare at least a 1 cps dividend fully franked. Shares on issue would increase 50% if all options were converted which would allow them to eliminate debt. Announcing a dividend at the AGM could be an option if they are still doing as well as they currently expect. The shares seem much lower risk to me, as you make 30%plus profit before the options are even in the money.
