Warrants are often used by their holder to short the stock. Less warrants a financing company add to shares better it is. The price of new shares is already lowered and to make it even more interesting a warrant is the cherry on the top. Shares could even be sold in couple of months and warrants is the only thing left, from here on your interest is the lowest SP and you don't have to watch passively, with warrants in hands there is no risk in shorting. By pulling the price down and covering several times in the life of warrants keeps you happy and if ever after a barn-burning news the SP makes a run, shorts that would otherwise ruin you are covered by warrants. That is the reason I don't like warrants that much and think that Rights with couple of months term are better deal for existing investors. Most of the financings involves warrants but I have seen financing without them, which IMO makes all investors pulling in the same direction.
