Gustoes wrote: Sir_Holler wrote: "Why would anyone want to exercise their warrants when they are good until Nov 2015?"
That looks like the agreement all along. This was before the recent run-up. It provides the company with $4.2 million in cash to help pay for a phase I trial. Given the volume the last two days it looks like the plan is proceeding as planned and that TLT now has the money.
"Theralase plans to work with the initial investors to have them exercise their warrants in the next 90 to 120 days to allow the Company access to the $4.2-million their exercise would bring." https://www.cantechletter.com/2014/04/roger-white-ceo-theralase-talks-cantech-letter/
Good point, I agree they can't be all gone. To put up that kind of money, the investor had to see a future with the company. The question is how many would they turn over and at what price....
21m shares at .15 - 3.15m
21m warrants at .2 to nov 2015 4.2m to excercise all
That's 50m shares. The original investor with 42m shares, if excercising all warrants would have 7.35 million invested, he could sell half or 21m shares at just an average of .175 to have 21m freebies and still be open to the future financing this fall. Just a thought anyway.
Total warrants: As at March 31, 2014 there were 23,731,567 warrants outstanding.
Each whole warrant entitles the holder there of to purchase one additional common share. The warrants are exercisable as follows:
1,480,000 at a price of $0.38 until April 12, 2017,
22,251,567 at a price of $0.20 exercisable until November 7, 2015.
Also from Nov 2013 financing, 8m shares to be sold by chairman
(As a condition of closing, the Chairman of the Board of the Corporation is required to sell 8,000,000 common shares to third parties following which he will cease to be a "Control Person", as defined under Canadian securities laws.)
So I'd say with those 8m sold and the original investor selling half (guessing), then we'd be pretty much done. Perhaps the original investor is selling all 42m shares&warrants at a small profit but planning to participate in the fall financing in full support of the company. I'd say since Nov 2013 and Mar7/14 warrant excercise date, all those shares could quite possibly be eaten up by now in that scenario too.
So while it sucks a bit for the retail/public market, we still have to understand it and look at the big picture and long term. Other juniors dilute dilute dilute with no news, nothing on the table, no progress. Here we have great disclosure as to the plan, a great company with great potential and able to raise capital... the buzz is evident, regardless of who sold what, when and what price isn't important, it's why? The day traders don't do 20m shares in one day. There is serious interest is why we traded 20m the last two days... that is exciting. imo