Thats a pretty big dilution. And if that 1 person (you know who you are) claims that this dilution can't happen because the investor is not permitted to own more than 9.99% of the outstanding, I've already explained how it can. And that will result in selling pressure.
The price would not fall to .05 since they have to buy them at .075. They will not sell for a loss. But they can still buy them up to Five year from Oct. and if the price is .50 in two years they can buy at .075 and sell for .50 or what ever the market is, after the obligations of the warrant is met according to the note(defined in the Company Note, as of October 1, 2012)