I've not seen the actual document and I'm no expert on SEC regulations, but if I were looking to negotiate an acquisition that partially used securities to fund it, I believe I'd rather give warrants giving the right to say a half million dollars worth of stock at the closing price a year from now rather then $150K worth of stock at current prices. That would send a strong message that I expect the stock to more than triple in a year. Of course I very much doubt that Fayiz could say that he gave warrants vs. shares, but I think we'd be able to get the picture.
By the way, here's a link to where Fayiz might want to polish up his CEO training.
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