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Post by laffs4sale on May 10, 2016 12:15:31 GMT -5
I looked but didn't see any specific language giving us that right. I did see that MNKD has no plans to list the warrants, so presumably if the stock goes above $1.50, you would need to exercise your warrants and sell the shares to get your money out. It seems odd that we don't have an automatic exercise clause because we need the money now, not 2-4 years from now.
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Post by mnkdfann on May 10, 2016 12:43:43 GMT -5
An automatic exercise clause? For a warrant? I've never heard of such a thing before, but I suppose I do not know everything.
FWIW, the standard definition of a warrant is typically something like "Warrants are securities that transfer the right (but not the obligation) to the holder to buy or sell an underlying instrument (for example, a share)."
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Post by laffs4sale on May 10, 2016 12:46:51 GMT -5
I know even less about it than you do. Thank you for you reply.
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Post by matt on May 10, 2016 15:28:46 GMT -5
Warrants are an option allowing the holder to buy in the future at a fixed price; they are not an agreement to buy and the warrant holder has no obligation to buy.
If the price goes over $1.50 the warrants will be exercised. If the price remains below $1.50, they will expire worthless like a call option.
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Post by brotherm1 on May 10, 2016 16:03:13 GMT -5
Warrants are an option allowing the holder to buy in the future at a fixed price; they are not an agreement to buy and the warrant holder has no obligation to buy. If the price goes over $1.50 the warrants will be exercised. If the price remains below $1.50, they will expire worthless like a call option. |
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Post by brotherm1 on May 10, 2016 16:08:36 GMT -5
I am so confused. I thought the warrants included in the $1.03 price give the investors the OPTION TO PURCHASE more shares up to the stipulated amount when the shareprice would hit at least $1.50 ?? Is this not correct?
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Post by mnkdfann on May 10, 2016 16:23:43 GMT -5
I am so confused. I thought the warrants included in the $1.03 price give the investors the OPTION TO PURCHASE more shares up to the stipulated amount when the shareprice would hit at least $1.50 ?? Is this not correct? Yes, that is pretty much what matt and I said. Not sure where you are getting confused. Warrant holders could also use the warrants to buy shares for $1.50 when the share price was less than that, but in that case why would they? |
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Post by anderson on May 10, 2016 18:09:55 GMT -5
I am so confused. I thought the warrants included in the $1.03 price give the investors the OPTION TO PURCHASE more shares up to the stipulated amount when the shareprice would hit at least $1.50 ?? Is this not correct? Yes, that is pretty much what matt and I said. Not sure where you are getting confused. Warrant holders could also use the warrants to buy shares for $1.50 when the share price was less than that, but in that case why would they? If you wanted MNKD to get the money you could exercise your warrants while they are underwater. Unlike options when warrants are exercised the company will get that $1.50 a share. |
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