It looks like even a better deal, as those warrants shouldn't cost Paradigm anything to convert. The agreement terms you posted allow for "cashless exercise". Paradigm won't have to put up any money at all. As long as the warrants are in the money, they will just get the spread between the exercise price and the market price, typically in the form of shares with a value the same amount as the profit spread on the warrants (i.e., if the warrant exercise price is 66 cents, and the stock is trading at $1.66, Paradigm would receive $1.00 worth of stock for each warrant). Which Paradigm will likely immediately short against, locking in the value. A nice risk-free (and no cost) transaction for Paradigm.