RE:WarrantsNobody has to exercise these warrants at this time - they have until Dec 15, 2015 to do that.
The shares they bought in the financing are eligible to be sold April 11 on.
Some people will not sell their shares and may or may not purchase more shares using
their warrants.
Some people will sell their shares and may or may not purchase more shares using their
warrants.
There is no reason to assume all the shares will be sold and there is no reason to assume
shares will be bought with all the warrants and those shares will be sold.
All those who were in on the financing will proceed as they see fit.
To take risk off the table, I would sell my shares and wait to exercise my warrants as long as possible to see if the company is producing revenue and then I would evaluate whether it is worthwhile to buy shares with the warrants.
If I were firmly convinced this company will succeed then I would not sell my shares and I
would exercise my warrants to help the company with more money to carry out their business.
So either one or the other above or somewhere in between.
All placees in the financing will choose depending upon their financial situation and risk tolerance. Insiders who bought in the financing may sell their shares to get the funds to exercise the warrants to put funds into the company (and pay taxes on the sell). After exercising the warrants they may sell their shares for reasons only known to them.
This is April and income taxes are due April 30 in Canada and I think Apr 15 in the U.S.