Xemplar Energy Corp XEPRF

RE: Warrants

[idleSpeculator]

Warrants 101 Often people who own warrants obtained them when they bought stock, often through a placement, so they own shares and warrants. Owners can convert these warrants to shares and the face value of the warrant up until the expiry date of the warrant. If warrants are at 47c and SP is now over $1 that means an instant gain of over 50c when excercising the warrant. Therefore you can assume all of the warrants will be excercised before expiry date. Warrant holders sometimes don't want to put additional new cash into a compnay than they already have, so sell shares (in this case at over a dollar) to pay for their warrants. For this reason you often see a lot of stock coming on to the market just before expiry date. This flood of shares sometimes drives the price down (simple supply and demand) unless there is significanrt demand for the stock (which there seems to be for XE at the moment. The flood stops after the warrant date, reducing supply, which in supply and demand terms, often moves the price up. That's the simple explanation, sometimes you find supporters of the compnay buying shares in the open market to increase share price to ensure price is high enough to get warrants excercised, in Xemplars case, the price is already so far above excercise price this hardly seems necessary