observationYesterday we closed at 49 cents today we closed at 29.5 cents per share, (lets say 30 cents because round numbers are easier for illustration purposes) but today, instead of one share we also have a right to buy 2/3 of a share for 10 cents. (2/3 of 15 cent exercise price) which is worth 20 cents (2/3 of 30 cents per share).
So the actual value of 1 share at current price is currently 10 cents higher than the current price.
If the value rebounds to 49 cents again, it still only costs 10 cents to buy that 2/3 share but it would be worth about 33 cents which would add 23 cents net to the value making it worth about 72 cents.
Regarding the news from a couple days ago, on Twitter, Dan Sutton the CEO for Tantulus Labs said he was "Proud to be working with one of the most respected teams in BC Ag" Someone replied "but the less respected team in the market." To which Dan replied, "Maybe for stock traders, We are more interested in their agricultural capacity :)" He also said " Can't speak to their financial situation but their operational team including (formerly) Bevo Agro is world class.
I think what he is saying is that the challenges the company faces with an insider dumping shares to invest in other ventures and the market manipulators trying to screw the company by shorting the $hit out of it, are stock problems not business problems.
If you believe in the vision of the company, the build out of capacity and supply agreements and the management's ability to grow and run the business as one of the lowest cost LPs you won't sell. If you don't believe that, maybe you should sell...but I'd personally wait until October 31st.
Warren Buffett — 'Games are won by players who focus on the playing field –- not by those whose eyes are glued to the scoreboard.'