RE: This fall - "crassula"Hi Crassula,
I think that we are almost on the same page! Yes, 2.381 IMG warrants are required for each IMG common share, each warrant exerciable @ $3.75 (3.75 x 2.381 = $8.93).
$8.93 - $7.40 (today's IMG close) means the "combined" IMG warrants are currently trading $1.53 "out of the money", plus the cost of 2.381 warrants @ $0.69 = $1.64, so IMG must trade at $7.40 + $1.53 + $1.64 = $10.57 to theoretically "break even", but then you have about one year of "time value" for this to happen. If you are "bullish" on gold, and the price of gold takes off as many anticipate, this price horizon could quite easily happen over the next year, and the IMG warrants could have tremendous "leverage".
Please forgive me if I have not explained this particular warrant situation that well - things are a little more complicated when multiple warrants are required to be exercised per common share.
BTW - I took advantage of CIBC unloading just before the market close today and picked up 5,500 IMG.WT @ $0.69. When IMG was trading a little higher @ $7.58 and IMG.WT @ $0.74, the "fair market value" off the Canadian Warrants website was listed at $1.72, more than double, a "bargain" in their opinion.
The website https://www.canadianwarrants.com/WarrantValues-Current.htm is an excellent source and I strongly suggest that you review the IMG.WT entry.
Victor