WarrantsWhy would anyone want to exercise their warrants when they are good until Nov 2015? To take a profit? The only reason I can think of is if they needed the cash for other reasons or thought they could invest it elsewhere for a better return. It would be great if they are exercising them now which would preclude the company needing to raise additional capital in the near future!
On November 7, 2013, the Company completed a financing by way of a non-brokered private placement, where 21,000,000 units were issued at a price of $0.15 per unit for gross proceeds of $3,150,000. Each unit consists of 1 common share and 1 non-transferable common share purchase warrant with a four-month holding period. Each whole warrant entitled the holder thereof to acquire 1 common share at a price of $0.20, expiring on November 7, 2015. In connection with the offering, the Company paid certain finders cash commissions totaling $299,675 (10% of referred business), settled commissions through equity issuance in the amount of 43,334 shares at a price of $0.15 per unit for a total of $6,500 and issued an aggregate of 1,985,900 (10% of referred business) finder warrants, each finder warrant exercisable into one common share at an exercise price of $0.20 per share for a period of 24 months after the closing of the offering. There was a total share issue cost of $20,470.