RE:Last Friday if you were savvy...though there's still time... For those still confused about warrants and where we are at in relation to the stock price, I thought I would help some of you out with understanding where we are at. I'm not going to break down the details of the warrants as this has been done many times, what I feel you should understand is where we are at in relation to the stock price. A company benefits from a warrant being exercised, because they are essentially selling new shares to those exercising them, so a company has a big incentive to raise the stock price so that all warrants are 'in the money', that way when people exercise them, the company gets an injection of cash without having to go to market per say. Even if a company doesn't need the money, it's still an added bones of extra cash to play with, and also takes away from the need to do a future raise..and of course much easier to accomplish when the warrants are so close to being 'in the money' anyway..
While yes this causes some dilution, it causes much lower dilution as opposed to the company coming to the market with a direct big raise, because people exercise warrants at different times, so it's more of a 'trickle' effect on the injection of cash to the company, and it's never clear how many people exercise, so the perception is much different than a company raising a set amount and all at once.
In many peoples opinion, as well as my own, this is the best strategy in regards to raising capital, without effecting the underlying stock price. Pretty much benefits everyone, and of course the small amount of dilusion gets offset if the company uses the new capital to grow the company that much faster. Cheers :)