The neophytes are looking at this upside down It's better to look at things right-side up.
This "offering" consisists of one share and one whole warrant.
Each warrant is exercisable at $1.25 for 2 years.
Admittedly, the dust hasn't settled, but at this very moment, at $0.98, the market is appraising the warrants at 2 cents.
The market is saying that there's a reasonable chance the stock will trade above $1.27 whithin two years.
That's a fact.
These are the mechanics of the market.