My guess would be that management could not get anyone to do a PP without warrants attached that would dilute the company even further to raise money. I also guess management hopes the SP of Pine Tree will appreciate before EVG's shares thus allowing management to sell the Pine Tree shares to get the money to keep operating.
The only person who could possible give the correct answer to your question is the CEO. This is my only guess but maybe I'm out to lunch. That said though it disturbs me that maybe this was the only option avail. to raise funds but I do believe the CEO owes SH's an explanation but I'm not holding my breath waiting for one.
Time to selltake the tax loss & move on if EVG stays stagnate through 2013.