PP's are usually at a discount to the going Market Price. And the price usually falls immediately to the PP price, both because of trading opportunities and dilution. that is fair ball for a stock that is represented fairly and where the market PPS reflects the intrinsic value... somewhat.
I have no problem with the .80 PIPE, but the 4.00 PIPE? The stock price at the time was a result of JB''s "Public Market Strategy" (that is such a cute phrase, almost like "Lurker"), and the FALSE financials.
Selling a stock on a false premise or when you know you can't deliver the goods is Promotion. Worse, misrepresentation.