Just to be clear, Burton was given options to be converted at anytime, he did at 1.90, he knows that the stock will never be cheaper. He now owns 50K more shares of STSI, its a buy price point of a dollar ninety. He apparently thinks there is more money above 1.90 than below it for his options. If he thought otherwise he would wait longer, buy at .25 cents sell at 27 cents for bigger percent gain, but the fact that they are converted options tells you more positive things are just ahead, its actually more positive than even a straight out buy.
I guess the real question is, what is the strike price for the option?
If the options were exercised at $1.90, then there is a short term capital gain of $1.90-strike price per share, irrespective of whether the exercised shares are held or sold. The only real reason I can see to exercise ahead of the expiration date (2023) is that Burton wants to hold the shares for more than a year, when additional capital gains taxes are long-term AND he believes the share price will go much higher in that time frame. Either that, or simply wants to exercise and sell to raise cash, by exercising and selling for some reason.
NO. 1.90 is the strike price. The options were not converted. He holds options that must be exercised by 2023 or they will expire worthless. If he exercises them at higher than 1.90, he will almost certainly sell them at some price over 1.90 at a profit. This will result in dilution of STSI stock.
He will sell these shares after they have gone up to convert even more options after
the rocket takes off. This is how insiders get filthy rich. He didnt put his own money
into the game until he knew it was a sure thing