Its a free market.  There are implications, costs and risks to the strategy though.  I was surprised to see some trades go through at or even higher than the pp prices.  Head fakes maybe.

If you had a big position to sell-off I doubt you could average better than $0.20-0.22 ....so thereafter you buy a PP at $0.25 per share ?  So then guess what... that "free" warrant starts to get expensive and that's just for the right to go in deeper at an out-of-pocket price of $0.35 or higher. 

I understand the optionality aspect of the warrant but if paying $0.35 - 0.40 for CUU sounds good then why not just buy the shares straight from the market now at prices between the $0.20 - $0.25 range?  You could end up with as many shares for half the price, or near twice as many shares for the expected warrant exercise cost.

I don't see the SP going down much for these reasons.

I believe the way to calculate the dilution is the following: 8 M / (549M + 8M) = 1.436 %
i.e. We used to own 100% of the shares to ourselves but now we just got 8M more shares crowding the pie plate within a new 577M share count.