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Fresh Tracks Therapeutics Inc V.BBI


Primary Symbol: FRTX

Fresh Tracks Therapeutics, Inc. is not engaged in any business activities. The Company is in the process of dissolution.


GREY:FRTX - Post by User

Post by Irishmantooon Mar 23, 2019 2:12pm
220 Views
Post# 29527252

Hey Don:

Hey Don:"What you don't know about warrants is a lot." (Movie: Moonstruck. insert word "warrants" for "men")
Your basic plan about switching out warrants (expiry May 19, 2021) for stock, which you said you did recently, is not a bad one, but your timing is horrible. That is actually my plan down the road also. 
Your estimations on the value of the warrants also sucks.
As an example;

People who bought warrants when the stock was $1.61 at  .05 cents just doubled their money 
when it hit $2.03.
Ergo..
Say Don traded(?) off all his warrants at say .07 cents and bought stock at say, $1.85 so poor Don only gets 37% of a share for each warrant he sold (37000 for each 10,000 shares)
Now a savvier investor will watch this stock go to say $3.20 in the next 5 months, and because poor Don doesn't understand time value of warrants, the warrants will trade at (my guess) .22 cents.
So if poor Don had waited just 5 months he could have received 68% of shares for his warrants.
(68,000 for each 10,000 sold)
Now the riskier investor,  will attempt to do the trade off at say stock at $4.90 January 2020 warrants at .37 (my guess) and get (75000 for 10,000)  but 68% sounds like a good risk reward.

As the famous Ruud once said....

Have fun
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