So he buys 300,000 shares with warrant, then proceeds to sell off shares for 3 bucks. He has a lock on warrants and can buy shares 5 years from now for 4 bucks.

Pretty sweet deal for the rich!

It stinks like shite. Or am I confused?

The combined price of one Common Share and accompanying Warrant in respect of one Common Share was US$3.00 . Each Warrant is exercisable to acquire one Common Share at an exercise price of US$4.00 (or approximately C$5.45) per Common Share for a period of five years from the date of issuance.