Aleafia Health Inc ALEAF

RE:Using Warrants to Cover a Short...explained!

[Toweringmars]

Sure thats true, but you you cant open a bigger short position than you have in warrants. And if you're going to give the company millions in financing, then even more to exersize those warrants as it runs into the 5's then I'm cool with that. Necessary evil. The shorting is only temporary and eventually they run out of warrants to cover. Anyone can check Sedar and see how many warrants are outstanding and Im fairly comfortable with the fact that its not a huge drop in the bucket. (admittably I did not tally a final number on them) but im sure I will in the coming days. 
 

 

[e-mail] wrote:
Sometimes companies have to give warrants for financing- - this allows riskless shorting and covering on an almost endless loop - say you have some of the $4 and $2 warrants - the right to buy ALEAF stock for those prices at anytime through warrant expiration.....well you let the stock run and then when it gets deep into the 5's (for the $4 warrants) or even the 4's for the $2 warrants - well you can short the stock at will all the way up to the number of shares covered by the warrants....Riskless shorting because YOU KNOW you can always cover at $2 or $4 by exercising your warrants .