The Warrant is exercisable by Modesa to purchase up to 22,500,000 shares of Common Stock of the Company (the "Warrant Shares") at an exercise price of $0.0038, subject to anti-dilution protection, from the issuance date to the fifth anniversary of the issuance date. Warrant is also exercisable via a "cashless exercise."
This comes from the modesa pr....note the modesa exercise price... Both parties would only agree to that price if they both thought that the pps would be much much higher....