In our case the warrants are "out-of the-money" as far as intrinsic value is concerned and the time value is decreasing.  Not much chance we'll see $0.40+ twelve days from now - so I don't think we see any takers for the $0.40 warrants but with any luck a year from now things may be different and we could see some warrants being exercised.  

According to SmartMoney.com: "The issuing company can then either issue new common stock or buy stock on the open market to meet the demands of warrant holders." 

Here's a good article on warrants.

For an example of trading warrants, check out Terrance Metals Corp which is currently trading at $0.50 while the TRX's warrants are currently at $0.30.  The warrants were issued pursuant to the company's short form prospectus dated June 14, 2007. Each warrant entitles the holder to purchase one share at a price of 85 cents per share and will expire on Thursday, June 21, 2012.

Good question...  google is a wonderful invention!