One PSTH share is a coupon book. Bill has gone to a wholesaler and purchased a bulk lot of m&m bags (UMG) at a price we couldn't get if we went to Walmart. You give him one coupon for a bag of m&ms.

The next coupon (PSTH remainco) you give him, he will give you an empty candy box in return. He's still at the wholesaler deciding which candy to fill it up with, so you hold the empty box until he's bought the chocolate to fill it. If you don't want to wait until he's filled it, you can sell the empty box to someone else.

The third coupon is a free loyalty card (PSTH 2/SPARC) for all his furure wholesale candy purchases. This loyalty card allows you to buy the candy at his special wholesale price that the public don't get access to, for life. Every time he buys a huge shipment of chocolate, you flash him your card and he'll sell it to you at cost price, whereas retail have to pay more. But unlike before, he will purchase the chocolate first, tell you what it is and then ask if you want to buy it. If you don't like the brand you can say no, and because you haven't paid him anything in advance you have your cash free to buy other chocolate in the mean time.

As for the 2/9 warrants, for every 9 shares (coupon books) you originally purchased, he will ask if you want to buy 2 more at NAV (or thereabouts).

If you accept this offer before his m&m shipment is delivered, you will get a full coupon book which you can exchange for all of the above. If you accept his offer after the m&ms have been delivered, you only get a partially full coupon book because he's sold his m&m shipment. So he will just give you the empty candy box and the loyalty card. However, because you aren't getting the m&ms, he charges you less for this coupon book (around 5.25 or so)