GREY:SFMGF - Post by User
Post by
BlueBullzeron Sep 08, 2012 6:17am
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Post# 20336076
PP curiosity
PP curiosity Would just like to make sure I have my facts straight. So this PP gives the investor (for every .02 in a 5000$ alotment) 1 common share of sdw and 1 half warrant exercisable after 12 months. Each full warrant allows the investor to purchase a share at .05. Thus they have 250 000 shares of SDW and 125000 FULL warrants. So because you're receiving half warrants you're essentially paying .10 per share at 250 000. So as long as the stock price is above .02 the PP is already in the money, and the option to buy 125 000 shares at .05 cents is just a bonus if the stock goes above .05.
That actually sounds like a really good deal especially with support at .025 increasing regardless of the massive resistance at .03.
When I first saw the PP I was actually really worried it wouldn't go through because I was thinking it was like a normal warrant purchase. Which would have meant you'd be forfeiting 5000$ for a chance to buy 125 000 shares at .05 cents. Because you'd be exercising your 2 cent warrant shares (5000$ gone) and because of the half warrants basically paying .10 per full share of sdw. 12 cents is alot of risk on a 2.5 cent stock. I'm glad this isn't the case. If for some reason this is the case and my first instinct was right, please feel free to let me know.