The probably have existing shares they bought below this price. A pretty common practice..I have down it myself...participate in PP...sell existing shares to cover costs of PP...when hold period is off probably sell those shares...take your write off and hold a whack of free warrants. The timing could be pretty good 20 cent warrants over 2 years at no cost to investor. I personally like to have free trading stock at all times so wait for the dips and buy in.