RE:RE:RE:RE:RE:RE:WarrantsYes they would. People get caught up in stock vs warrants or exercising warrants vs selling them but it's all just math. If as you say the stock had a price of $44 and the warrants would have an intrinsic value of $5.41 then in theory that is what they would trade at. Now at any moment in time the bid could be lower because of liquidity and the market for the warrants just being thinner but that doesn't change the value.
Gaps do occur in situations like this but there are people who specifically look for those opportunities, it's free money so to speak. In the old days they had arbitrage desks who looked for these types of gaps that occurred in interlisted stocks, Toronto & any foreign market, because of fast moving markets and currency changes. They get filled quickly and everything returns to it's real value - market wise that is.
At worst I could see a small discount but not nearly enough to worry about because when push comes to shove the warrants can always be exercised, if not by the warrant holder who maybe doesn't have the cash sitting around then by the many deep pocketed people here who would love to add another risk free amount to their profits.
I always thought the best approach was to have some of each then there are no worries.
HollywoodHuss wrote: My question for warrants was will price go up in relation to potential buy out price. Say it's the 2B buyout at $44 a share. With the calculation of that if the stock went to $44. The warrants would then be priced at $5.41 CAD? Would these prices be reflective in the market on the exchange?