They also purchased 1.3M shares at 6.78. so their cost can't be that low. If you check out the sec filing S-3 recently, the company issued 2M shares of warrants exercisable in December 2015 at 2.71, to be expired in 5 years. They were not able to sell all the 2.9M  shares they just got in my opinion, probably mostly exchanged between their funds, but under the same big boss. For example, the funds involved in 2014 offering are Cranshire, Hudson Bay, and Capital Ventures. The funds sharing 2015 warrants are Hudson Bay, Capital Ventures and Intracoastal. But notice that Cranshire and Intracoastal have the same boss, Mitchell P. Kopin. Who knows if there are other funds under the surface. As long as their total shares were under 5%, they don't need to file sec report. Bottomline, if they want to make money on these new warrants, price must go significanlty higher than 2.71.