RE: RE: Question.again please..PTA.WT.B I haven't read the prospectus so I could be wrong. The bought deal financing is irrelevant to you. The half warrant in that deal was a kicker to sweeten the pot, an incentive for investors. If an investor bought a million shares in the deal, they got 500k warrants, which they could exchange for 500k shares if exercised at a future time.
You bought full warrants on the open market, that can be exercised 1 for 1. 100k warrants = 100k shares. Again, I have not read the associated literature with the deal, but this is my understanding as to how it works.
Warrants are like options. Value depends significantly on time. If PTA went to .35, the value of the warrant depends on the time to expiry. If PTA never trades above 0.35, the value of the warrant will eventually go to zero. There also seems to be some confusion as to what happens when you exercise. If you exercise your warrants, you have to pay the exercise price. So, if you bought the warrants today, you pay 2.5 cents to buy the warrant today, and 0.35 cents if you exercise it. Your breakeven therefore, is 0.375 if you choose to exercise. Very similar to how you exercise options. Warrant price is the equivalent to the option premium.
To answer your question, if PTA went to 0.35 by the end of the year, the warrants could be worth .15-.20 cents, maybe more. You have to remember that the purchaser of those warrants now has a breakeven of .50-.55 cents (exercise price + purchase price), so they would be betting on significant price appreciation by the warrant expiry. If PTA failed to increase further, the value of the warrants would gradually fall until expiry, and eventually expire worthless.
One last example to make sure this is clear. On the expiry day of the warrants, assume PTA trades at 0.38. The value of the warrant would be .03 cents. Why? Because the time component is no longer relevant. The buyer is now indifferent to purchasing the shares iin the open market for 0.38, or buying the warrant at 0.03 and exercising for 0.35. Both cases result in a cost of 0.38.