Newstrike Brands Ltd NWKRF

RE:RE:VERY IMPRESSED WITH DENNIS FONG - CFA

[goldman777]

MarkMuller1 wrote: Wow so you basically just bombarded him with questions about how warrants work in general? jeez man. Could have read all that on google, should have asked him questions about convertions etc 

By going straight to the horses mouth, all I wanted was validity to my post for this board. I am and was well aware of hoe the warrant concept works before the post - I saw confusion and mis-informed posts and wanted to try and set the record straight for investors here. Tagging Mr. Fongs replies here hopefully adds an element of trust to my post - plain and simple. I think as far as the TFSA vs. the RSP query goes - capital gains inside both vehicles are okay, doesn`t really matter what your individual ceiling is. Pre conversion because the math is so much easier, a $1.00 strike price on the A warrant entitles you to buy a common share at any price above $1.00 for $1.00 if you exercise your warrants...now say you have 100,000 A warrants inside your TFSA. You should be covered tax free because you already acquired those warrants within your previous contribution limits / trading. Once the strike price gets activated you just know the warrant will couple the common share price almost immediately - and why wouldn`t it. If thge common share is worth $2.00 and you are entitled to buy one for $1.00 for every A warrant you hold, why would anyone sell the A warrant for less than $2.00 - put a sell order in for your 100,000 A warrants @ $1.75 and you just handed some else an easy $25 g`s. Same applies to the RSP, but we all know the tax man cometh when you cash out - the TFSA is the way to go. My original post was for the benefit of this board and the newer members who were seeking clarity - I asked Dennis the questions to which I already knew the answers, just wanted some weight to my post is all. Side note for the newbies - unless you hold common shares you cannot vote on the merger deal - the warrants carry no weight.