Post by
Charlie_Chan on Jun 11, 2020 12:24pm
Easy money
Wow, if I could buy 1 unit for $.85, that was worth 1 share and 1/2 warrant (right to buy a share for $1.15 for 2 years) and the share price currently was $1.15. What would I do?
Like anyone else, I will seel the share and keep the warrant. Free money! I would assune that there will be 17.6 Million shares ready to sell very shortly!
A total of 17,647,500 Units were sold pursuant to the Offering at a price of $0.85 per Unit. Each Unit is comprised of one common share of the Company (a "Common Share") and one-half of one Common Share purchase warrant of the Company (each whole warrant, a "Warrant"). Each Warrant entitles the holder thereof to acquire one Common Share (a "Warrant Share") at a price of $1.15 per Warrant Share until June 11, 2022.
Comment by
simc1 on Jun 11, 2020 12:41pm
Fortunately the pp was filed by institutions and not penny flippin joes
Comment by
Gr8play on Jun 11, 2020 12:42pm
....except that.... All securities issued pursuant to the Offering are subject to a statutory four month and one day hold period. ....and an intelligent investor will likely hold on to the shares even after the hold period if the company is increasing shareholder value....
Comment by
abecedarians on Jun 11, 2020 3:22pm
The warrants are not "free" since the overall deal has warrants attached to the agreed "unit" price...
Comment by
OriginalG on Jun 11, 2020 5:11pm
How do investors on the financing calculate the cost if its a unit? Is it .85 or does the warrant calculate in somehow?
Comment by
abecedarians on Jun 11, 2020 6:52pm
I can't speculate how they priced the initial "unit" costs of one share + one half of one warrant. My personal calculations equates to $0.95 per "unit" (warrants attached) as fair market value.