Unfortunately, there is some confusion here regarding "warrants". Nobody "bought" warrants. The financials make it clear they were "granted for services".
FWIW, I have previously purchased, sold, & exercised warrants for other companies. There is no "prerequisite" like needing to own common shares.
The $531k figure being used is the value of the warrants based on the "Black Scholes" calculation, which is the standard.
The term "fully vested warrants" means they have been "fully earned" and they can be excerised at any time. They may have been "earned” simply by the celebs saying "we endorse G n H" but they likely have a contract where they are expected to do more? (Keep in mind they ARE fully vested warrants however so they own 'em)
5 million of the warrants have an exercise price of .10 cents. 5 million x .10 cents = $500k, hence the bulk of the $531k figure being tossed around.
So Jillian can say "I would like to exercise 1 million warrants". To do this, she would need to surrender 1 million of the warrants & give the company $100,000 dollars. In return, she receives 1 million common shares. (Think of this as NON-TOXIC, friendly "dilution") Yes, she would essentially be buying shares at .10 cents each.
Keep in mind she likely won't exercise any warrants until the share price is at least .20 cents or higher, why would she? If the PPS hits $1, she still pays .10 cents.
This is her incentive for a higher PPS! And yes, if I did "let's say $10k worth of consulting work" for a company I might take $50k in "worthless warrants" if I were confident they would reach the $50k level, or higher, and YES, I would consider myself INVESTED in the company even if all I had invested to date were "services", or my time.
Hopefully this clears things up a bit?
AI
