Just to add icing on the cake..

Maybe Mellon is selling 400,000 shares to purchase (by adding roughly $420k) the expiring warrants?
400,000 shares x $3.90 = $1,560,000 (Sell)
3,400,000 shares x $0.58 = $1,972,000 (Buy)
Mellon needs to add approximately $412,000 to the transaction to acquire 3.4m shares - in part by selling 400k shares at the start. (and with a give/take round up to $420k to be added in cash)
So in the end Mellon is UP by a NET  3,000,000 shares.  At $3.90/share that amounts to $11,700,000.
Looks like a smart transaction to me!

Cheers!
Z_Greek