GREY:ATBPF - Post by User
Comment by
MrMugsyon Jan 02, 2024 10:47pm
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Post# 35808100
RE:RE:RE:RE:RE:Early warrant exercise
RE:RE:RE:RE:RE:Early warrant exercise I wouldn't get too hung up on these warrants. The math makes sense to me.
Let's put it this way ... If you could get 100% (or a high percentage) of the warrants exercised in this 1 month window, you could bring in more money than waiting until July (summer doldrums) to exercise.
Remember, there are 6.5MM warrants looking to do the same ...
So, at what price would you need to convert your $1.00 warrants into shares and sell them all at market to still make money? Remember ... 6.5MM warrants could be doing the same thing while buy/sell volume may be low.
Same question ... what price would you need to convert your $1.50 warrants into shares and sell them all at market to still make money? Remember there are 6.5MM warrants all doing the same thing.
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Why would ATE offer this opportunity at $1.00? Because any money added to the bank now would be better than uncertainty later in 2024. What if the markets turn ugly in 2024? There is a lot of bad in the world and it's only going to get uglier ... including war, US politics and mortgage renewals for many.
If you can convert warrants to cash now - you are buying time before you need to further go to market. You could also buy time during some partnership negotiations too. That could be the difference between going to the TSX or going to the NASDAQ in an offering. IMO.
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From what I recall - Insiders don't hold these warrants. If I recall correctly, insiders agreed to drop their warrants in order to reprice the rest of the warrants. Something like that - to avoid any concern of playing to the insiders. Anyone know if I have that right ?