RE:RE:RE:RE:WarrantsThe warrant price is made up of time value and intrinsic value. Currently the stock price is below the strike price so it has 0 value. Therefore the time value is 0.16
My point is is that if the warrants trade like stock options time value usually doesn’t rise as fast as the stock price particularly when the warrants get above 0.35 and there is intrinsic value. So I would expect at some point the spread between the share and warrant price will bottom out (currently 0.08) and thereafter start increasing as the share rises.
Another thing to consider is whether warrants can be shorted. If yes it would be possible to create a synthetic warrant by buying the stock at (0.24) and selling a warrant short for +0.16
The net effect of this would be owning the stock for a net cost of 0.08 and having an obligation 5 years from now to deliver the shares for 0.35 - a nice return of 337% if the warrants are exercised as expected. The higher the warrant price relative to the share price the more attractive this strategy.
We live in interesting times...