OTCPK:EMMBF - Post by User
Comment by
Seraphim1on Feb 19, 2017 2:01am
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Post# 25866765
RE:RE:RE:EMC.WT - 12% discount
RE:RE:RE:EMC.WT - 12% discountcatfacesupreme wrote: I'm not sure I understan what you mean. Based on what I've read they're exercisable for 3 years, no mention of a holding period. I'd appreciate some info if you can provide. Thank you
When the company went public the units were issued to accredited investors. Each unit consisted of a share and 1/2 warrant. These all came with convoluted restrictions. The shares have a hold and don't become free trading till March 11th. The warrants have a 3 year life. They are exercisable into shares @ $1.75. The warrants are free trading however the warrants can not be exchanged into shares till December 2017 or one year after the company went public.
So yes the warrants are trading at a discount to the shares because you can not exchange them into shares till December. As the December date gets closer the holding risk becomes less and the warrant price ($1.75 + premium) will be more reflective of the SP.
Hope that helps