I haven’t seen the actual contract/loan language, but my “layman’s” understanding of cashless warrants meets the standard used by the professionals drawing up and entering these agreements.
If the maximum number of 500,000 warrants was used anywhere in the contract, and professionals understand the concept of “cashless warrants” meaning less than 500,000 in totality because you are using part of the 500,000 to buy the remaining warrants without putting up cash, I think the equation would become meaningless. JMO.