Newstrike Brands Ltd NWKRF

RE:RE:RE:WARRANTS

[TheInsider]

TruthAboutHip wrote: If I may comment on the warrants. The HIP.WT.A warrant is essentially an open book as far as I can tell. I have been assured by HIP IR (FWIW) that there is no acceleration threshold price attached to these warrants and that they have a 5 year shelf life. I can't imagine why a company would put themselves in that position when there are so many warrants out there. What happens if the shareprice reaches $5 ? Suddenly the company is required to sell shares worth 5 times the strike price and have no option but to honour them. This has happened in the past with other companies and it can cost them big money in the end.

I sold all of my first issue warrants when I heard of the issuance of the newer warrants. I don't know if that was wise but it seemed to me that the new warrants easily outplayed the old ones not only on strike price but also in regards to expiration date.

The only underlying issue is the possibility of consolidation which would cause problems with either of the warrants because strike prices rise and amounts of warrants lower accordingly in both cases.

Perhaps someone has a better vision of the warrants but this is what I have understood.

Consolidation will happen - same ratio is applied to the warrants as to the common stock.

How is that an issue? Numbers change, big deal.

I never did understand why consolidation scares retail, I guess mostly because it's done by broke junior mining companies.

I'd consider it a plus if it brings an uplisting to the TSX and investment from real funds.

Share price is now fully ridiculous, I will continue to pick away.