Newstrike Brands Ltd NWKRF

RE:very confused

[Charlie_Chan]

You wondered why the warrants are lagging behind? 

Here are the terms of the financing which created HIP.WT.A

"Under the terms of the offering, the underwriters have agreed to purchase 60 million units from the treasury of the company at a price of 75 cents per unit and offer them to the public by way of short form prospectus for total gross proceeds of approximately $45-million. Each unit will consist of one common share of the company and one-half of one common share purchase warrant of the company. Each warrant will entitle the holder thereof to purchase one common share at a price equal to $1 for a period of 60 months following the closing of the offering."

This financing creates 60 Million shares and 30 Million warrants (WT.A)

Each of the 60 Million Units which cost $.75 are now worth  

1 HIP SHARE = $.77
1/2 HIP.WT.A = $.10
Total Value    = $.87

Normally investors who purchase these types of units will sell the Share and keep the Warrant.

However, it sure looks like a large % of investors in the financing are liquidating their warrants and keeping their shares. 

Even when they have disposed of their warrants, the investors are still $.02 above the cost of their initial unit ($.75)

Have a look at today's trading and the names of Canaccord and Anonymous shouts out loud and clear as to who is dumping at $.20...and in the millions of shares.

It also looks like they have reached their limit in selling and this should start to move to $.50 + in short order.

Just my speculation 

House Positions for C:HIP.WT.A from 20180822 to 20180822

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
33 Canaccord	0			1,000,000	197,499	0.197	-1,000,000	197,499
1 Anonymous	377,790	74,187	0.196	1,264,000	249,921	0.198	-886,210	175,734
79 CIBC	475,200	90,767	0.191	1,257,000	239,530	0.191	-781,800	148,763
58 Qtrade	8,200	1,633	0.199	200,000	39,250	0.196	-191,800	37,617
22 Fidelity	0			50,000	9,500	0.19	-50,000	9,500
62 Haywood	2,200	436	0.198	34,226	6,662	0.195	-32,026	6,226
36 Latimer	1,000	200	0.20	1,109	211	0.19	-109	11
48 Laurentian	5,000	950	0.19	0			5,000	-950
124 Questrade	120,240	22,473	0.187	112,000	21,280	0.19	8,240	-1,193
19 Desjardins	97,000	18,950	0.195	0			97,000	-18,950
83 Mackie	100,000	19,500	0.195	0			100,000	-19,500
80 National Bank	166,320	32,774	0.197	30,500	5,875	0.193	135,820	-26,899
68 Leede	250,000	48,924	0.196	50,000	9,250	0.185	200,000	-39,674
85 Scotia	305,700	57,147	0.187	97,000	19,157	0.197	208,700	-37,990
7 TD Sec	762,886	147,100	0.193	476,490	90,031	0.189	286,396	-57,069
2 RBC	782,200	150,175	0.192	159,000	29,123	0.183	623,200	-121,052
9 BMO Nesbitt	1,306,089	257,418	0.197	28,500	5,345	0.188	1,277,589	-252,073
TOTAL	4,759,825	922,634	0.194	4,759,825	922,634	0.194	0	0

zoobadoobaaa wrote: why are the warrants lagging behind all of a sudden