We'll just have to agree to disagree then.

My interpretation is that if Ernesto is in a blackout, the warrants would be extended based on the duration of the blackout, or based on a short time period such as 10 days. For example, if Ernesto entered the blackout 1 month before the warrants expired, then he would be given a 1 month extension on those warrants. Extending the warrants by a full year while he is privy to insider information seems like it would be a violation of regulations, especially because the warrants are out of the money.

A blackout is not just a free pass to extend warrants as long as desired.