I thought the warrants act the same as options, except for...

I thought the warrants act the same as options, except for having a non-standard contract behind them.

So, it limits our upside above $2.07. But it also gives a potential source of funds.

Up to $2.07, the warrants have minimal effect on us. After $2.07, we get diluted after they convert them, thus limiting the SP moves above $2.07 (depending on the size of the dilution).


So the lender is gaining some equity upside as a bonus on top of the interest charges.

So they gain:
- 13% or so interest PA.
- Some discounted/dilutive shares if our SP rises 25% from this point before the warrants expire.

Less offensive than a royalty...