OTCPK:NWKRF - Post by User
Post by
silkroad007on May 17, 2018 8:17pm
137 Views
Post# 28049776
Warrants
Warrantsguys there seems to be so much back and forth here.
Split - If there is a split or whatever the warranst will adjust accordingly. Zero sum game and someone also made a comment about the fact the SP will never reach the strike price this way. It's a zero sum game and the value of the company will be SP X shares period. If the rollback is 10:1 and the SP is now at $10 and teh Warrant Strike at 17.50 its no difference than 1.00 and 1.75. Percentage is the same and its all a derivitive of total company market cap.
Buyout - Im not a laywer but someone mentioed if there is a buyout the new company can choose to keep the warrants or not? Sure maybe true but it would have to include a compensation or conversion. Stop trying to be laywers and interpret wording 7 different ways. Take a logical step back and say - does this even makes sense? You cant just vapourize 70M dollars in this case. If that was the case you would have companies getting buyouts everyday just to vapourize warrants and then flip it back to the original company for $1. Warrants would cease to even be a thing. Not to mention CRA would be all over your A$$ from a tax perspective.