My guess is that it is a risk/reward deal. Also, they can't buy that many shares in the market without moving the price up substantially. Sure, they could buy smaller blocks over time, but by the time that had 5 million shares it would probably show in the market price.
But just for argument sake let's say they could buy 4.8 million shares at $.40 at a cost of about $2 million. Now they have to hold that position hoping that the price goes up, and soon enough that they didn't lose a better opportunity elsewhere. If the company is doing great, but the price won't move up - or even worse, goes down and stays there for several months, then the risk just gets worse.
With the option, Apollo assumes a possible loss of a fixed amount of $500,000. That's the most they can lose. They probably wish the exercise price was $.40 or even $1.00, but apparently the deal iQSTEL would make is $2.00 and apparently Apollo thinks that is a fine price. Also, they apparently further believe the share price will go significantly higher than $2.00, so they can make a good profit, or reward.
I see this as a pretty good clue to how strong the company must seem to Apollo that they would accept the $2.00 exercise price. Depending on the termination date, if one exists, they may not exercise the option until/unless the share price gets at their target price. But iQSTEL will want the money sooner than later so I hope a termination date was set, even if not disclosed.
Still even if they bought at $2.00 and sold at $3.00 that's a pretty good, somewhat instant return even after deducting the price of the option. We take a little hit on dilution but suddenly iQSTEL has more cash to grow, and that's why we are here, for the growth potential.
