Questions relating to WarrantsI have 2 questions for the board where someone may have some past experience with how this has been handled in other situations.
First, I'm am just trying to better understand how a buyout of a company might be handled differently between the issued common shares and warrants of a company. For an investor to partake in the offered buyout, would they have to convert their warrants first into common shares before being able to take advantage of a buyout or are there typically two different buyout prices for holders of the common shares and a discounted price for the warrant holders before tendering? Just trying to understand how this works in practice.
A separate question I have is if one were to hold warrants in a TFSA. If one were to convert the warrant into common stock in 2020 in your TFSA, it is my belief that the warrant exercise price would then have to be taken into consideration when calculating compliance with the TFSA maximum contribution limit for 2020. For example, if you exercised 20,000 warrants in 2020 at $0.30, that would equate to an additional TFSA contribution of $6,000 for 2020. If you had made an earlier TFSA contribution of $2,000 in 2020, you would then be over the limit. If you made no TFSA contribution earlier in 2020, you would be under the limit. Is my understanding correct?