No matter what I do, I cannot get folk on this board to understand these types of offerings. For $3, the investor purchased a share of stock plus a warrant giving the holder the right to purchase one share for $4 over a period of five years.  

How much is the warrant worth?  Whatever that amount might be, you subtract that from $3.00 to get the price paid for the share of stock. 

Did we sell to an institutional investor or lender? A lender would have shorted the stock at well above $3 over the past few trading sessions. They would then take their offering shares and use them to cover their short.  They are left with the warrants and say, $3.75 per share, which gives them a $0.75 profit over and above the cost of the share/warrant unit. 

The above sounds like what happened here; it has happened here before and happens a lot in finance. 

The question is, why did they need more money now?  Hopefully the answer is a very positive one.