Emblem Corp EMMBF

RE:RE:RE:RE:Question

[PruneFace]

brentkosta wrote:

Macqwa wrote: Thanks ledrog.....is the prices quoted as 3.63 for one and half a share  at 4.75 accurate?

Yes that sounds accurate. You basicallty buy shares at 3.63 and for each share you purchase they give you a half warrant. So 10,000 shares purcahsed gets you 10,000 shares at 3.63 and 5,000 warrants. Which are shares that can be exersized the the price per share exceeds 4.75. The warrants are give to sweeten the deal for investors. 
 

Think of it as a stock option. 

And yes, you need to be an accredited inestor to take place. 

Just to clarify further, each full warrant can be exercised at anytime, barring a hold period. One full warrant plus $4.75 gets you another share. The warrants are unlikely to be exercised until they are 'in the money' ie the share price on the open market exceeds the purchase price of $4.75. The money raised by the warrants goes into the company coffers, so in essence, it is a secondary financing. In this case, the $10 million financing is consists of 2,754,821 units at $3.63. If the 1,377,411 warrants are all exercised it will raise an additional $6.543 million. It has already been noted that the placement is likely to be increased and the above numbers also do not include the underwriter's option to purchase up to an additional 15% of the total number of units in the placement.