Another way to view this is the capital those warrants provide to the balance sheet is a net plus. I also believe the short issues is a bit of an exaggeration. Given the low level of liquidity as an OTC stock and pending news, there’s not likely that much more shorting that will occur with the exercise of the warrants, certainly not at a level that would have much of an impact.
The best thing this company can do is play it straight, and not try to use costly (and dilutive) gimmicks like warrant extensions in an attempt to control the share price.