GREY:STTYF - Post by User
Comment by
wordlesson Oct 30, 2012 7:02pm
195 Views
Post# 20541926
RE: RE: RE: RE: RE: RE: RE: RE: Paradigm sold 500,
RE: RE: RE: RE: RE: RE: RE: RE: Paradigm sold 500, thegazelle is correct. The warrants give you the right (not the obligation) to buy shares at $0.70 per share. Each warrant allows you to buy 1 common share.
Therefore, you are betting on the share price breaking $0.70 before they expire. If the share price rises to $0.80 (for example) before the expire, your warrants effectively have $0.10 of value. You could then sell the warrants back to the market for $0.10 or buy shares at $0.70 and make the $0.10 spread.
Companies can also extend the expiry date of the warrants. I'm not saying SND will do that, BUT if they did extend the expiry date, they would be worth more than half a cent for sure.