RE:Warrant Expiry and effect on share structureShatnersRug wrote:
32,487,501 Class A warrants will be expiring on Feb 4.
Current share structure states that fully diluted EDV sits at 470,091,146
I hate to admit it, but I am unsure what will happen to the # of outstanding shares when expiry occurs. It's a foregone conclusion that the share price will not be @2.50 in 2 week's time. Hence, will the number of outstanding shares drop from 470,091,146 to 437,603,645 after expiry?
- 2 Things can happen !!
1). EDV share price goes above $2.50 by Feb 4th, in which case warrants are exercised and EDV share float goes to 470 million but it also gives EDV another $80 million cash.
2). EDV share price does not hit $2.50 and warrants expire worthless. EDV share float then stays at 430 million shares.
- Now what are the chances we see EDV share price at $2.50+ by Feb 4th... Hmmmm...
- To put things in perspective, SMF has now surpassed its 52 week high and its share price is higher than what it was when Gold was at $1600+/ oz.
- These markets work in strange ways and anything is possible !!!.