RE:This just in....what does this warrant mean?.... on the TSX-v , a warrant (issued by a public company) is frequently given to investors buying into a private placement as a way to sweeten the deal by providing a time sentitive opportunity to also purchase a set number of more shares at a later date, at or near the same price that the PP was at.
If the price of the stock has not gone up at the later warrant expiration date, then the warrant holder usually doesn't bother exercising his warrants - if it has gone up, the warrant holder exerises his warrants to buy the shares at the lower price, and then is in posession of an immediate gain in his shares, and frequently sells them for a profit at will.
In this case, it is a way of saying to Suncor:
' you believe so much that Suncor will also benefit with the rise in oil prices and you're asking us to sellout at this historic low value, so let us also have some SU warrants at its low pricehere, to offset the loss in torque COS holders will experience by shuffling into Suncor shares'.
I suspect this attempt to add more value to COS shareholders may not work however, as SU has not fallen much due to their refining capacity so its not really a bargain is as COS is, so when oil does finally rise, SU may in fact stay flat or go down, making any hope for gains with warrants a moot point.