If I'm not mistaken...he does not "have" to purchase at that price,
he can just let the warrants expire. A warrant is like an option, it gives you the right to purchase at a predetermined price but not an obligation.
He just wants more time and if the company actually comes through with their products and the share price rises well above his strike price the he will use his option to exercise.
The big question in my mind is why will Barnhill not negotiate with his largest shareholder? A man that already holds over 55M shares.
If Barnhill thought that there will be no change in the companies progress or share price by Sept and it would still be below his strike price then why would Barnhill even care? The warrants would just expire because no one in their right mind would excercise a warrant at .14 when the share price is .11 and the company would receive no cash anyway.
Can Barnhill give this guy inside info to assure him that most likely the price will be well above your strike price so no need for an extension anyways? I don't know but I doubt it.
No matter how you look at this, it sounds like a shitty situation to me. I know I wouldn't want to piss off a guy that held 55M shares of my company.
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