RE:How?A warrant holder sells enough shares to raise the cash needed to exercise the warrants.
If warrant holder holds 1 million warrants priced at $0.05, the cost to exercise (convert to shares) is $50k. So lets say he sold all at $0.10, he would've had to sell 500k shares. If he sold all at $0.20, then he would've had to sell 250k shares etc etc.
The net effect is selling pressure that puts pressure on the share price, but puts money into the company treasury which is a positive.
KickPumpForGoal wrote: Can someone explain how the exercise of warrants has caused the shares to slide dramatically? The amount raised and shares issued should not have impacted the SP that bad.