RE: New vs Old Common Price Some explain why this is wrong?
Because anyone who buys 400 common shares today knows they will soon be converted to 2 new common shares and 1 new warrant. They shouldn't be willing to pay more than they expect 2 common and 1 warrant to be worth. And if they expect 2 common and 1 warrant to be worth a lot more than the price of 400 common shares today, they should buy a lot more than 400 shares and push up the price.