If you plan to hold for 5 years and want less money out with the same number of shares. If I sold my 360K shares at .55 I could get a million warrants at .20
If the stock goes to $5 in the next 5 years I make lots of money.
Your 360K shares would be worth $1.98 million, and the warrants at least $4 million. The trick would be to get 1 million warrants at $0.20.
Cheers.