My understanding of the arrangement is something like this...

Our new partner wants to be a significant shareholder. The company wants them to be a shareholder... but for now limited to not more than 19.9%.

The company needs/wants money. So they sold 70 million (plus?) shares to somebody early in the summer at 50 cents. They may want/need even more money in the future.

The partner may buy shares on the open market at the lowest available price any time it wants to. Whether they could get 19.9% at today's prices is unknown... but they might.

When the deal is closed the price may pop significantly and the partner may need/want to purchase more shares to get to the agreed maximum. If they in fact do want to, then the company may (but is not required by the agreement to) sell the partner some number of more shares at a price to be set by the the previously agreed formula.