OTCQX:BGMZF - Post by User
Comment by
ovison Sep 01, 2012 4:47pm
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Post# 20296444
RE: RE: Short for Warrant Exercise Cancel Out.
RE: RE: Short for Warrant Exercise Cancel Out. Bloomfield,
What do you think would have happened if an August 28 warrant holder had not exercised her warrants before the CTO was ordered? That is, would August 28th come and because the CTO was in effect the warrant would expire worthless? Or could the warrant holder exercise the warrant with the company assuming of course if the holder wanted to put down 85 cents.
If you have any experience of CTOs and the treatment of options and warrants that expire while the CTO is effect? For example, some trading strategy might suggest short sale against an in the money call option to lock in a riskless profit. However, if there is the possibility for a CTO being in effect while your option expires then the stragtegy is no longer risk free. I guess I should call my broker and will but was just wondering if you knew the answer to this scenario.
TIA.