Viking Therapeutics Inc (VKTX)

[gilotron]

VKTXW warrants

I'm wondering if someone can help explain the warrants to me as I don't really understand what benefit they bring. I thought they were a geared investment somehow:-

person a buys warrants at 5$
5 x 10 = $50

person b buys shares at 6.5$
6.5 x 10 = $65

share price goes to 20$ warrants expire

person a converts warrants to shares and sells them

20 x 10 = $200

person b sells shares

20 x 10 = $200

So the warrant holder only gets $15 more profit. The part I don't get is the share entitlement price which I think is 1.25$. How is this factored in?