That's a good question. An initial exercise date of 9/30/2022 was provided, which should mean that Apollo will be able to purchase those shares on or after that date. Normally there would be a termination date by which the shares must be purchased or the option forfeited for any remaining non-purchased shares.
But the 10-K does not provide the termination date. We would hope there is one, otherwise Apollo can keep buying those shares at $2.00 not matter how high the price might rise. But either way it's not too big a deal I don't think. iQSTEL gets cash sooner or later if exercised. Sooner means more cash, later may mean less market affect of new shares being added to the market.
Overall I think this is a positive. JMO, but I think it shows that iQSTEL and Apollo believe the stock can be over $2.00 by September. But if it's not over $2.00 by then they still have the option until the termination date, if there is one.
In theory Apollo could have just bought shares in the market and hope the price would go up, but that doesn't bring in any cash to iQSTEL. The option is a way to sell shares, but this is deal is much better. They could have sold a bunch of shares under market value which would stuck it to the investor. Instead, they are guaranteeing that they (and we) get at least $2.00 a share and also the $500,000 too.
I think its a pretty good deal considering where the price is at today. Now if the market price is $4 or $6 or $8 (or whatever) come September, then it will look like a pretty good deal for Apollo, and some may not like it then. But when you look at the overall market at this time Apollo is assuming a significant risk, and we get cash for that.
They most important part is the maximum share count increase is about 3.2% and iQSTEL can get up to a bit over $10 million in cash for the option. That's huge and can potentially fuel many Smarbiz/Whisl type acquisitions, or a even several larger acquisitions that could fuel enormous growth. I assume that is the reason for the option. The extra 3% increase could pay investors over and over in EPS growth opportunities. We are a far cry away from days of giving up millions of shares for low thousands of dollars. This should serve as a pretty good indicator of just how strong this company really is.
I see this as a very positive sign, but I hope that some affirmation such as margin expansion, profitability, and/or even some good product news with EV, Fintech, Smart Tank, etc will come soon to help support the price move to levels that the Apollo announcement appears to foretell.
