So,If you purchased say 2 million of the options at $0.001 today...

So,

If you purchased say 2 million of the options at $0.001 today for $2000 then you would have to pay another $2000 to buy the new options when they (hopefully) are approved by shareholders. That's $4000.

If you invested the $4000 directly in the stock at 1c then you would get 400,000 shares.

Now the interesting part: Say the stock rises to 2.25c (the strike price) in the next year. The new options would still be worthless but the shares would be worth $9000.

But say the stock rises to 4c in the next year (not totally out of the question as they should have a better result next announcement). The new options would convert to 2 million shares and be worth $35000 after the cost of conversion while the shares would be worth $16000.