Yes, warrants are already owned and already count

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Yes, I like the idea. The warrants are already counted towards the authorized shares. So exchanging two warrants for two shares doesn't change the count against the authorized shares. The number of outstanding warrants currently adds a lot of overhead while not contributing anything. This method allows the company to leverage those warrants to actually get some cash out of them.

This method adds less new shares not already being counted against authorized vs the old method.

The old method at 41c sp would probably give 40c +1/2 warrant. $10M in cash would require 25M new shares + 12.5M new warrants, that is 37.5M counting against the authorized. You see increasing the authorized by 100M would not get you far, maybe $30M and you are maxed out again.

The new method, since we are leveraging warrants, $10M in cash would require exercising 25M old warrants (to shares), giving 12.5M new shares as incentive. That is counting 12.5M new against the authorized. 100M new shares get you much further.

The o/s goes up by the old method 25M with 37.5M new counting against the authorized and with the new method the O/S goes up by 37.5M, but only 12.5M new counting against the authorized.

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