RE:warrants vs commontomchoco wrote: Pro's
1) more bang for the buck. TLT will be a binary event and it will either be a zero or huge winner. Laser division does not even factor in. All about the drug. You are risking a small bet to hit it big.I was buying warrants at 8.5 cents(US currency) yesterday.
Con's
1) You cannot exercise warrants as a US investor. You must trade out of them. Very petty move by Roger as he does not want any US ownership if he cannot avoid it.Very narrow minded individual and does not see the big picture. Without the FDA and US pharma, he is doing investors of Theralase a disservice.
2)As the warrants go higher in price, the premiums will evaporate and then the warrant will trade at a discount. Liquidity is going to dry up and lons will have a to sell at a discount. That is a given. It happens in the commodity markets all the time. The MM's in Canada will bleed the longs because they will be the only buyer of the warrants. I would do the same .
In short, I am hoping for big things from the company in the next year but when it comes time to sell them, be prepared to be raped by the buyer of your warrant. Canadian investots I believe can exercise so that is the best course.
Tom, Who do you use in order to buy the warrants? I bought mine through Maxim during the PP.