I have a theory.It seems like someone wants to put a lid on this at around 1.60. Today, it was Cannacord towards the close, with what looked like an iceberg order (again). I think we will see this continue until the TSX approves the repricing of the warrants. Once approved (if it is) it would be nice if we got substantial news. Of course, if the news was big enough to take the pps above 2.50 (not too likely), then the company would leave the exercise price alone. Warrant holders would exercise over 2.50 and Flyht ends up with more cash.
Let's look at examples. Suppose all the warrants are exercised at 1.60. Then the cash they would get would be around 2.7 million giving Flyht a total cash position of 4.7 million. At 2.50 they would get around 4.2 million, for a total of 6.2 million. Compare this to the end of 2016 ($770,00) and 2017 ($2 million). Puts the company in a much stronger position, don't you think?
But, what about the dilutionary effect? I lot of folks sem to worry about this. Well let's say that the stock price is 40 cents higher than the exercise price, once they are all exercised, (i.e. 2.00 or 2.90). Seems like a lot, eh? But, remember, the outstanding is only 8% more than it was. This amount to about 3.2 cents per share. It seems to me a small price to pay.
Comments are welcome.
Piper