GREY:BZAMF - Post by User
Comment by
UserErroron May 28, 2018 2:44pm
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Post# 28089788
RE:RE:exercising
RE:RE:exercisingIn simple terms, you do not want to exercise your warrants if you plan on holding long-term. You'd be giving them more money ($2.15 per warrant) to get the same dollar return as you're getting now with your warrants.
Since it's the same dollar return, but with less money on the table, you have a higher percentage return on your original investment.
I also took part in the $1.15 pp and I do not want them to accelerate the warrants. The one thing that's confusing and is not clear, is that the term sheet says the warrant shares are subject to a 12 month contractual escrow period from the date of closing. This would mean that the warrant shares, otherwise known as the shares you would receive from exercising the warrants, are technically unrestricted. If you willingly exercised now, you could sell those shares.
I don't know if that's actually correct though. I have a feeling the term sheet could be wrong, and the language on the actual warrants might be different.