GREY:RVVQF - Post by User
Post by
thebiz on Aug 28, 2018 1:12am
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Post# 28527369
Legitimate Warrant Question
Legitimate Warrant QuestionNew to warrants and looking for some help:
Question - When warrants are excercised, does the stock still need to be purchased with additional money at the excersise price? i.e. if I purchase 1000 warrant shares @ 0.09 for $90.00 and then hold them until the common shares reach $3.00/share, I have now invested $90.00 but do I need to also pay 1000 X the excersice price point of $1.50? 1000 X $1.50 = $1500
therefore my total investment would be $90 + $1500 = $1590
Then I can sell my 1000 shares at $3/share = $3,000 - $1590 = $1,410 profit
Is this correct? Or once I purchase the warrants do I already own the stock at $1.50 upon excercising the right?