RE:RE:RE:warrants I have absolutely no idea what you thinking - it sounds like you don't understand.
If the common shares are trading below 0.35 the warrants are worthless.
If the stock goes to 1.00 for instance a warrant holder could exercise pay 0.35 and buy the shares. Your brokerage house will inform you that the warrant you sold short has been exercised, pay you the 0.35/share and you will assign the share you bought.
You make the 0.19/share on the net investment of 0.16/share.
what is so hard to understand?
The warrant will not be exercised unless the share price is greater than 0.35
You have no reason to buy back the warrant if you hold til the bitter end.
If someone exercises prior to the expiry of the warrant your return improves because you are holding it for less time.
Five years ago who would have thought the share price today would be at 0.35/share.
Who knows where the share price will be 4 1/2 years from now. if someone has been shorting the warrants and buying the shares it could be because they are chasing a less risky but still very decent return.
menoalittle wrote: It's a total bullchit "strategy" (if you want to call it that) imagined in the dark fantasy of somebody's twisted mind, because no smart fella's going to do it. Reason being is that you only win (even a penny) is if you can buy back the warrant for 16 cents less than whatever the stock is trading for... and there's absolutely no guarantee or assured safety that you will successfully do that, especially at your desired time or need to close the position.
So, what idiot is going to tie up that much money (on both the long and the short side) and wait... for how long di you say (???)... for the spread to reach that hypothetical target difference of 35 cents?