Hey Kev

Theoretically your right. But you have to remember that you are under a 4 month hold where you can't trade the stock. Four months can be an eternity. That is the reason you get a warrant.........compensation for the risk of those four months. Let's say you had 1,000 warrants at .25 and the stock was trading at .35. You sell 1,000 shares at .35 and buy the same thousand back at .25 pocketing the difference. No risk!

Buy a new pp at .20 and you have no idea what will happen before you can trade those shares, and if the company consistently stiffs warrant holders then those aren't worth a plug nickel either. There are lot's of companies that need pp's and will work hard to keep thier list of fananciers current. I get several pitches per month and you begin to learn where your money will work and where it won't.

The other problem you have is that prior to a pp the sp gets pounded by selling to cash up for the pp. If I can sell at .20 and buy back in the pp at .20 I get the warrant for nothing and risk only the 4 months. If I have a flow through then I can even go underwater and dump after the four months with a nice tax set off and just sit on the warrant similar to how Dwek does it.

lot's of options if your a lender. especially if your in a bad sector when even more are looking for financing.