Probably because they feel the company is worth significantly more than $.20, as well as significantly more than the warrant price of $.29. Additionally, they probably feel that there is tremendous potential to Intertainment Media, and there could be a quick and dividend on a spin-out/carve-out/sale of Ortsbo.
Effectively, they overpay for shares that they feel confident in, and as a bonus they have two years to decide whether they would like to double their investment. That means RISK FREE UPSIDE.
That gives them a larger net position with decreased risk. Sounds like a win to me!
Great question, thanks for giving me a chance to answer it.