RE: WARRANT PRICESInteresting strategy and discussion, which I'm not sure if I fully understand, since never short stocks (or warrants).
If for example, from the current share price of $2.37, PNP goes to $6.50 (as I'm sure it will at some point over the next 4.3 yrs) this would represent a $4.13 increase or 174%. As far as the PNP.WT.A warrants go, I imagine that if PNP were trading at the $6.50 exercise price, with say still 3 years of time value remaining, they would command a valuation of around $3.00, which represents an increase of $2.60 over current price or 650% (hence the "leverage" effect of the warrants vs shares). Given this, wouldn't PNP.WT.A be a little dangerous to short, as the short position has to be replaced at some point, even if you also held the shares. Can you even short warrants?
With your strategy would it not be preferable to buy the shares and short the PNP.WT warrant, which also trades around $0.40, but has significantly less likelihood vs PNP.WT.A of reaching the $15.00 exercise price over the next 3.8 yrs
Victor