Here is from SEC site how cashless warrants are exercised?
http://www.sec.gov/Archives/edgar/data/1125052/000119312504034537/dex99d3.htm So if I use number that warrant holders had 9.5 million warrants. Using exercise price of $1.5 and market price of shares $2.60
It appears that warrant holders will get 9.5 million shares without paying anything. The market price of shares doesn't change, some how, the number shares delivered using this formula. Therefore, claim of company that cashless exercise as less dilutional doesn't appear to be the case at least by this method.