I would think of it like this....you are buying shares as you normally would on the open market only with a bonus. You are correct....you can potentially lose your initial investment one those shares but the warrants only have an expiration but do not need used if the price never increases. I guess they could also be used to offset a tax loss of needed but essentially they would be used to buy more shares at a lower locked in price. Your mindset is mostly right.
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