$50,000 gets 100,000 warrants but only 52,000 shares. If you believe in this story then it is the sum of shares that you control when the 'cows come home' that matters and not the relative price of warrants to shares or when the warrants are excercisable.

To me it is obvious that this buyer expects the warrants to be exercised before the final excercise date ( in 2014).

By the action this buyer locks up almost twice the number of shares. As long as the share price will be $5 or much higher, the warrants will be close behind and it is the number of controlled shares that will matter and not the price being paid for them.

This buyer must be betting that it is better to pay only 50 cents now and $4 later, then 95 cents now. Should the sp rise by a dollar then you get a dollar profit per each of your shares. That represents 105% profit.

But when the sp goes up by a buck then the warrants could rise almost by as much. That could mean as much as 200% profit on same money invested.

As long as the warrants track the sp on at least half the price rise, warrants mean greater profit. This of course assumes that one sells the warrants well before the excercise time and the sp does not go above the magic $4.

If the sp goes well above 4$ then the warrants are even a better buy.