RE:warrants I call this a covered call strategy when using options.
Based on today's closing prices you could buy the stock at 0.35/share and sell the warrant for a credit of (0.19)/share. This means your acquisition price for the common is now 0.16/share with an obligation to sell at $0.35/share if exercised.
The profit if called would be (0.35 - 0.16) or 0.19/share on the investment of 0.16/share. The return assuming the common is trading over 0.35 in 4.5 years from now when the warrant expires would by 118.75% (excluding commissions) for an average yield of 26.4% per year.
the other day the warrants were trading at 0.24 and the common at 0.38 - the return based on those prices was 150% or 33.3% average yield which is pretty rich.
I am not advocating doing this but at some price I could see others doing it to lock it some decent low risk returns.
tomchoco wrote: It would appear the someone is shorting the warrants and buying the common for a percentage trade. In options lingo, that is called a buy-write. Taking a 15-16 cent risk and will make close to 64% on his money if he gets called away.