Here's a good source to do some direct reading:
Post# of 32642
https://www.upcounsel.com/stock-warrants
But for illustrative purposes, say someone wants to spend $2000 on a VERB investment. At $2/share, that's good for 1,000 shares. Simple math. With an increase in share price to, say, $20, that's $20,000 in total value.
With warrants, you have to purchase, or 'exercise' the warrant at a certain price to get the shares, meaning you pay the strike price multipled by the number of warrants owned.
At 0.40 cents per warrant, that same $2000 would yield 5,000 warrants. The warrants are good til 2024, and can be exercised anytime before then, once we reach the strike price. (Reread the last 10Q to get the exact month, and confirm the strike price)
With the strike price of $3.443, the warrant holder would pay $17,215 to get their 5,000 shares. Sounds like a lot.
But if the warrants are exercised at the same share price of $20, those 5,000 shares would be worth $100,000, minus the upfront cost of exercising the warrant- Over $80,000 in profit.
This is assuming a 1:1 conversation ratio, which is what I was told by IR a few months ago.
In a nutshell, I see that warrants have higher profit potential, which is why I own some.
I just typed a lot of words that may sound good, and are hopefully all accurate, but please read extensively into this on your own, and make up your own scenarios before you decide to get warrants vs shares, both, etc.