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Post by awesomo on Mar 25, 2019 16:14:08 GMT -5
Would anyone in their right mind NOT exercise 1.60 warrants? Would BOD ask for more authorized shares now, before all or most 2019 catalysts materialize? No. Depends what the share price is when the warrants expire. If we're below the exercise price, nobody will exercise. Asking for more authorized shares now doesn't mean they will use them soon (or ever) nor does it set a price in stone for future offerings. So whether or not "catalysts" have materialized has no relevance. It is just a reserve bank that management can dip into whenever for whatever reason. However, they already bamboozled us with the latest dilution after all those reassuring words last year.
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Post by rossomalley on Mar 25, 2019 16:32:02 GMT -5
Mike told us last time (a little over a year ago) that he was asking for a lot but they would last 3 years so we should relax. And it might be for a merger or acquisition! I guess that didn’t work out. 🤨 I’m really looking forward to his lame explanations this time around (and all the accompanying excuses for him that our Stepford Investor colleagues come up with). Fool me once...
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ASM 2019
Mar 25, 2019 17:24:51 GMT -5
via mobile
Post by traderdennis on Mar 25, 2019 17:24:51 GMT -5
Would anyone in their right mind NOT exercise 1.60 warrants? Would BOD ask for more authorized shares now, before all or most 2019 catalysts materialize? No. Depends on the price in December. Warrants are still more valuable to short and see if the holders can cover below 1.60 or sell calls against their warrants and pocket premium greater than exercising warrants today.
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Post by buyitonsale on Mar 25, 2019 17:32:43 GMT -5
"Depends what the share price is when the warrants expire. If we're below the exercise price, nobody will exercise." the question was - Would anyone in their right mind NOT exercise 1.60 warrants? There is .38 on the table right now times 26M shares... I guess, the answer is - Yes
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Post by awesomo on Mar 25, 2019 17:36:44 GMT -5
"Depends what the share price is when the warrants expire. If we're below the exercise price, nobody will exercise." the question was - Would anyone in their right mind NOT exercise 1.60 warrants? There is .38 on the table right now times 26M shares... I guess, the answer is - Yes Wrong, there is a time value to warrants that you would lose completely by exercising now. Holding warrants gives you protection for shorting at will above your exercise price. So if a warrant holder shorted at 2.25 last week, they've already gained .30, while still holding the warrants to cover/short repeatedly until the exercise date.
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Post by buyitonsale on Mar 25, 2019 18:45:27 GMT -5
he he, I did not say exercise now... nor did I say that the holder is not going to short...
I said "Would anyone in their right mind NOT exercise 1.60 warrants?"
You, on the other hand are contradicting yourself by saying that there is a chance warrants will not be exercised by when they expire ...
Yes, 1.60s will be exercised.
Not only those, but there is still a chance that 2.38s will be also.
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Post by awesomo on Mar 25, 2019 19:00:43 GMT -5
You do know the share price can fall below 1.60 by December right? I'm not contradicting anything.
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ASM 2019
Mar 25, 2019 19:03:28 GMT -5
via mobile
Post by tchalaa on Mar 25, 2019 19:03:28 GMT -5
And if MC says he wants the shares just so that they will be available in case he needs them in the future but he doesn't plan on using them anytime soon, NO ONE WILL BELIEVE HIM THIS TIME. I will shout the hell out of my chest liar enough with the can rolling down the road tactic and ...
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Post by buyitonsale on Mar 25, 2019 19:05:53 GMT -5
Of course share price can fall. So, the bottom line is, whoever is making the decision to let this money potentially go to waste is not in their right mind, would you agree
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Post by traderdennis on Mar 25, 2019 19:06:41 GMT -5
he he, I did not say exercise now... nor did I say that the holder is not going to short... I said "Would anyone in their right mind NOT exercise 1.60 warrants?" You, on the other hand are contradicting yourself by saying that there is a chance warrants will not be exercised by when they expire ... Yes, 1.60s will be exercised. Not only those, but there is still a chance that 2.38s will be also. There is a chance for a 20% increase. Plus you would need about 5 traded shares above 2.40 for every share exercised and the price to stay above 2.38 on April 9.
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Post by traderdennis on Mar 25, 2019 19:09:57 GMT -5
Of course share price can fall. So, the bottom line is, whoever is making the decision to let this money potentially go to waste is not in their right mind, would you agree They are not letting the money go to waste. Do you understand selling short? Warrant holders will sell first, then cover even if the price is substantially above the exercise price. There is a very good chance many of the $1.60 warrant holders have already sold short. They now can cover on December at 1.60 or anytime between now and december if the price goes below 1.60 on the open market. If they cover early, they can reshort if the price goes above 1.60 again before December. Just like playing a poker freeroll.
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Post by babaoriley on Mar 25, 2019 19:23:23 GMT -5
To me, the only reasons that you might exercise a non-tradeable warrant well before expiry is (i) someone from the company has persuaded you to do the company a solid and (ii) you want to exercise and then immediately trade the stock and take your profit now, while you have one!
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Post by buyitonsale on Mar 25, 2019 19:37:28 GMT -5
"There is a very good chance many of the $1.60 warrant holders have already sold short. They now can cover on December at 1.60 or anytime between now and December if the price goes below 1.60 on the open market." That was exactly my point, because the poster above said "Depends what the share price is when the warrants expire. If we're below the exercise price, nobody will exercise.". Yes, 1.60s will be exercised, would you agree
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Post by awesomo on Mar 25, 2019 19:45:57 GMT -5
"There is a very good chance many of the $1.60 warrant holders have already sold short. They now can cover on December at 1.60 or anytime between now and December if the price goes below 1.60 on the open market." That was exactly my point, because the poster above said "Depends what the share price is when the warrants expire. If we're below the exercise price, nobody will exercise.". Yes, 1.60s will be exercised, would you agree I don't think you understand this at all. Cover =/= exercise.
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Post by buyitonsale on Mar 25, 2019 20:21:29 GMT -5
Will 26M 1.60 warrants be exercised before they expire? Yes, they will, wouldn't you agree
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