RE:RE:RE:Leverage7Twiggy wrote: You trade them the same as regular shares. The symbol is OGI.WT. There were 28,500 on the ask at .75 and 11,000 on bid at .71. One share gives you the right to purchase one share of OGI at 1.40. Right now the shares are worth OGI,s last price 1.62 - 1.40 = .22 plus .49 intrinsic value. If the stock moves to 2.00 they are worth 2.00- 1.40 = .60 plus intrinsic value. I think this stock could easily double before the warrants expire in December 2017. If they doubled from todays price of 1.62, they would be worth 3.24 -1.40 = 1.84. plus some intrinsic value. They are easy to trade. The trick is to get out before the expiry date, which in this case is December 2. 2017. The intrinsic value drops the closer you get to the expiry date. Most of my OGI investment is in the warrants, but then I am a fairly aggressive investor. They are a little hard to understand but can be very profitable. I have been trading them off and on for years.
it should be noted though, that in the event you cash in the warrants, it will have an effect on the share prices(a dilution of shares). Unlike Options, which are just contracts on shares already out in the Secondary markets, if you exercise a Warrant, you increase the amount of shares in circulation as your new share comes directly from the company and is brand new. Now, the Share price of current outstanding shares already kind of takes this into account as it is known how many shares are possibly able to be introduced so it will have a relatively small impact on share price.