GREY:ABGPF - Post by User
Post by
nino9on Nov 20, 2016 2:12pm
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Post# 25486784
The Warrant Game
The Warrant GameThe warranty game must have been very lucrative during the days the share price was consistently above the $0.20.
A calculation on a share price of $0.25
:
Sell 1 share for 0.25, profit 0.25-0.07=0.18 minus 25% capital gains tax equals profit of 0.135.
Total revenue 0.135+0.07=0.205.
Use 1 warrant at 0.10 to purchase 1 new share means a pure profit of 0.105 plus 1 new share.
Sell 100,000 shares at $0.25 and you receive 100,000 new shares plus $10,500.00 pure profit.
Initial outlay $7,000, end result 100,000 free shares plus $3,500.00 spending money.
I never understood the animosity of Mr.Taylor towards Mr. Baxter but reading Mr. Taylor’s comments I think I am beginning to understand:
“The problems, as described by Mr. Taylor, go back to 2014, when he bought shares in Alabama Graphite. It appears that the investment was uneventful until mid-2015, when the company appointed a new chief executive officer, Donald Baxter. A few months after the appointment, Mr. Taylor began questioning Mr. Baxter on how and where he was spending the company's money”.
Although Mr. Baxter could not scrap the warrants, he could seriously curtail the warrant game.
Is the questioning an act of revenge? .