copy and paste from the EQUITY UNIT OFFERING TERM SHEET Zenabis Global Inc.
Overnight Marketed Best Efforts Offering of Units
C$20,493,704
June 19, 2020
Warrant Acceleration Right: In the event that the closing price of the Company's common shares (the "Common Shares") on the Toronto Stock Exchange (the “TSX”), or such
other principal exchange on which the Common Shares are then trading, is
greater than C$0.32 per Common Share for a period of ten consecutive
trading days at any time after the closing of the Offering, the Company may
accelerate the expiry date of the Warrants by giving written notice to the
holder thereof and in such case the Warrants will expire on the 15th day after
the date on which such notice is given by the Company.
hmmm - so does that mean if they do a reverse split, let's say 10 to 1 for example - the share price will be .90 cents (it will start to drop immediately of course) but as long as it stays above .32 cents for 10 days, they've doubled their .16 cent warrants.
That would be like the reverese of when they profited by shorting themselves with an offering at .15 cents when the share price was .48.