Upside Cap
I don't doubt there will be some impact, but how much is the big unknown. I don't see anybody holding options at .40 rushing to buy at that rate when the price is .50. I realize that would be a 25% return, but especially if the price is trending up, which I expect it will be, the options might be minimal until it gets in the .60 - .80 range.
Even then, it seems impossible to gauge how much the options might slow down a freight train moving at an unknow rate of speed? For all the people who don't hold the warrants, its the same as us now looking at insiders who hold options at X per share. Thats something that benefits them, but isn't relevant to us.
The difference with this warrant share offer is the volume of shares involved. In my mind, smart people will hold .40 options as long as they can and try to sell them at .80 to $1.00. That might be an upside cap, but a cap at a much higher price.