The investor is paying a small discount price for the stock of the company at present and counting on making all the money on the warrants in 2 year time frame, difference of price between $ 1.15 and whatever max price during this time. Poet management may have better idea about the growth potential in 2 years just based on organic growth but even they cannot predict the market forces for the upside. I think that the investor got a very good deal and as for the company, they have 1 bird in hand ( 10 million) rather than counting on 0.75 warrant extension and still wait to see if they are exercised. depends on how desperately and how soon they need the money for their execution plans.