Warrants and Exercise Price... From the January News release...
TORONTO, ONTARIO and STORRS, CONNECTICUT--(Marketwire - Jan. 21, 2013) - OPEL Technologies Inc. (TSX VENTURE:OPL)(OTCQX:OPELF) ("OPEL") has announced a financing with IBK Capital Corp. ("IBK"), whereby IBK will act as agent on a best efforts basis, to conduct a private placement offering of up to 11,000,000 Units at a price of C$0.50 per unit for proceeds of up to C$5,500,000. Each unit consists of one common share and one common share purchase warrant. One full warrant allows the holder to acquire one common share of OPEL for a period of two years at an exercise price of C$0.75 per share. The private placement is conditionally upon acceptance by the TSX Venture Exchange. The securities issued pursuant to the private placement will be subject to a hold period which expires four months and one day following closing.
So If they have two years to Exercise their warrants is it not a huge show of confidence that they woulkd want to be "in the money" early so they can hold the shares? Or do they have to wait until the HOLD PERIOD is over (4 months and one day) first? Not entirely clear on the warrant thing...
they get 1 share and 1 warrant so they would want to sell the share where they can buy the warrant (ie. .75 cents) so as not to loose any gains at all? is my understanding correct? If it is it will be unlikely to see the stock price dip below >75 for the next few months....
G