N.WT.A$52.75 million financing closed just over 2 months ago. The issue included a ¾ warrant A whole warrant ticker N.WT.A allows the holder to purchase a share at $3.15 within the next 60 months… 2023. When these warrant started trading the underlying stock was at $1.76 (close on Oct 29) and the 2023 warrants closed at .83. The share price ratio as a measure of leverage should remain fairly constant based on trading history since the value of these warrants are not being diminished by time with these being so long dated warrants.
I think the warrants represent the best opportunity and trading vehicle. There is only 17.25 million *.75 = 13 million .A warrants available. Reduced availability will often result in price movement in the upward direction being somewhat amplified by lower supply. At these prices the leverage is enormous.
2 months ago when the warrants began trading. N @ $1.76 N = N.WT.A @ $.83.
A financing of over $52 million at $3 just closed on Oct 25. I think it is a fair bet that the share price will go higher.
Some simple math.
Today with N @ $1.05 and N.WT.A @ $.29. If we assume the stock recovers to $1.76 and the relationship remains the same the warrants would trade at .83.
The value of N is 3.62 the price of N.WT.A. So you could own 3.62 times more warrants than the underlying stock at the current prices. Again if we assume the historical relationship holds true when N.WT.A is trading at .83, N is trading at $1.76. An increase of .54 in the price of the warrant versus an increase of .71 for the common shares. But since you can own 3.62 times the number of warrants for the same cost as 1 common share the result is an increase of .54 X 3.62 =$1.95 versus .71 for the same value of investment in the common shares.