RE:The Warrants....There are 2 things you are forgeting with the value of warrants and if lespeculateur is reading he needs to understand this as well. In the valuation of warrants are the intrinsic value and time value.
Intrinsic value is if the warrants are above the exercise price which szls.wt is. In this case a share price of $1.05 over an exercise price of $0.72 means that there is already a value of 1.05-0.72 = 0.33 0.33/8 = 0.04125 meaning there is min value of the warrant of 0.04. The time value means that you have the leverage of the warrants but with more time on your side. Basically there is an appeal the longer the expiry on the warrants because the share price can continue to increase especially with the share price being over the exercise price. The calculation is very tough to explain but current time value at canadian warrants has it at 0.09 based on 0.87. At a share price of 1.05 the warrants fair value is 0.11 or higher based on a growing share price.
The point is that already the share price is over the exercise price. This takes a ton of risk out of it. The share price is growing and there are 3 years in the warrants. All these make the warrants very attractive as you have almost 2:1 leverage meaning you can potenially receive the benefits of a higher return with half the risk.
https://canadianwarrants.com/time/current.htm#axzz6YicQ6pKD
skier59 wrote: .....give you a hedge for the future. If you wanted to buy 10,000 shares today it would cost you basically $10,000. So let's say you don't have that available but you have 80,000 warrants which will convert to 10,000 shares. So you buy 80,000 warrants at say 10 cents = $8000. Now you will have to convert those 80,000 warrants into shares at some point, or sell them. 80,000/8=10,000 x .72 = $ 7,200
Initial investment $8,000 + exercise price $7,200 = $15,200 which equates to a SP of $1.52 as your break-even. It is after that point where the warrants will become explosive once the SP climbs above $1.52
So if the SP goes to $5 your additional profit would be as follows;
8000 shares @ $1 = $8000 x $5 = $ 40,000
80,000 warrants converted into 10,000 shares = $50,000
which gives you $10,000 additional profit
SP = $10........$80,000
$100,000..........$20,000 additional profit
So basically if you get the Warrants @ 10 cents or less even better, you will generate $10,000 additional profits for every $5 jump in SP.
So if you think this SP is going over $1.52 within 3 years then the Warrants @ 10 cents are a great Hedge for the future.
Warrants @ 8 cents gives you a break-even at $ 1.36
Warrants @ 12 cents = BE = $ 1.68
14 cents = BE = $ 1.84