RE: RE: Big things to come
Have a look, but here is what these guys recomend... Hope this helps,
Cussy
https://www.preciousmetalswarrants.com/howtotrade.html
What happens to warrants if the company is taken over or merges?
The warrant holders are usually treated well in a takeover situation. Some recent examples, Yamana Gold bought out Desert Sun on a stock for stock exchange and the old Desert Sun warrants are now traded as Yamana Gold warrants with the same expiration date. Another example was the buyout of Bolivar Gold was for cash and the warrants holders were treated well, even thought some of the warrants were still 'out of the money'.
Recent history is teaching us that when a merger is announced and the company being acquired is consenting to the deal and the terms are a stock exchange as opposed to a cash buyout that investors should best sell their warrants at the prevailing market price. Our rationale is that if management has consented to the deal this will usually prevent any other suitors. Also, these deals take months to actually close and your investment dollars are basically dead money during this long process.
In a stock exchange arrangement, the warrants will continue on as warrants of the acquiring company with the same expiration date and with the exercise terms adjusted to reflect the terms of the stock exchange in the merger.