randal, a warrant is simply the right to buy a share in the future at an agreed upon price. As an example I have warrants to buy SNO at .35c that expire Apr.09. If I decide to exercise those warrants then I would pay the company for those shares and they would then be added to the float and the company would receive the funds from that purchase. Obviously I would only exercise them if the price was higher than .35c or they would simply expire.