Thoughts on Repricing warrants?Let's talk about something that is of concern to me
I see some news on the NXO website on their want to reprice warrants (expiry in Feb 2020) from $1.56 to $0.45. I am on the fence about this and would like to know the thoughts of others.
On one hand, if things go as well as anticipated for launch in January things should be a little rosier. Thus an execusion of warrants at the new price, more cash in the coffers for NXO, and better coin for what would otherwise (most likely) be an expired piece of paper to beneficial shareholders. Win
But in the back of my mind is that the reprice of the warrants could lead to a bit of a pump & dump effect in terms of now those beneficial shareholders see it as otherwise free money and sell their newly acquired shares to otherwise average down or free up some long tied up cash. Lose
I'll probably get flak but I've been thinking about this as a negative long term for what is looking like a very positive outlook on NXO
Negatives: Dilution, a negative investor sentiment due to overselling of warrants (supply and demand), viewed as a lack of confidence?
Positives: More money in excercised warrants for NXO, a potential for more beneficial shareholders to own more of a potentially game changing company
Thoughts would be greatly appreciated
Thank you all in advance and merry Christmas!