RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Someone can explai how the Public offer worksWhat a pity! If SP was higher than .13, PO should be a good deal. But it's not the case.
Because the SP it's .08 and PO .13, that a really bad deal, look like
PO is for Bag Holder Thanks @TheDude36. In resume PO allow you to :
- reducing the risk
- keep your money
| | Buying 10 000 shares |
| SP | PO .13 | buying .08 |
| 0.08 | 1,300.00 | 800 |
| 0.085 | 1,300.00 | 850 |
| 0.09 | 1,300.00 | 900 |
| 0.095 | 1,300.00 | 950 |
| 0.1 | 1,300.00 | 1000 |
| 0.105 | 1,300.00 | 1050 |
| 0.11 | 1,300.00 | 1100 |
| 0.115 | 1,300.00 | 1150 |
| 0.12 | 1,300.00 | 1200 |
| 0.125 | 1,300.00 | 1250 |
| 0.13 | 1,300.00 | 1300 |
| 0.135 | 1,350.00 | 1350 |
| 0.14 | 1,400.00 | 1400 |
| 0.145 | 1,450.00 | 1450 |
| 0.15 | 1,500.00 | 1500 |
| 0.155 | 1,550.00 | 1550 |
| 0.16 | 1,600.00 | 1600 |
| 0.165 | 1,650.00 | 1650 |
| 0.17 | 1,700.00 | 1700 |
| 0.175 | 1,750.00 | 1750 |
| 0.18 | 1,800.00 | 1800 |
| 0.185 | 1,850.00 | 1850 |
| 0.19 | 1,900.00 | 1900 |
| 0.195 | 1,950.00 | 1950 |
| 0.2 | 2,000.00 | 2000 |
If SP hits .16
PO make 300$ and have the right to invest 1 600 to gets 10 000 shares.
Buy if someone bought at .08, he starts making money at .085 and when SP hit .16 he already made 800$
IMHO DD
TheDude36 wrote: The issue is you are looking at this without many other variables included. If a person was strictly only investing in this stock and all their money was only ever going to be used for investing in Zenabis, then yes you aren't wrong this is a bad buy. But they aren't. They are making millions in the mean time this chugs along to a point where they can make more cash outside of zena due to the fact their cash isn't tied to this stock but rather they just wait outside the stock risk free (on the warrants only) hoping to make a quick cash in. You have to remember warrants means you don't have to spend your current cash on hand but rather in future you get to. Which means that money is working elsewhere and if zena hits .19 say, well in a moment they can just add .3 per warrant profit directly to their pockets, zero risk. Warrants are also zero risk in the sense that if this does go to zero they didn't lose anything for holding warrants. Basically the risk to reward ratio is 100% all reward with zero risk to losing. Now they risk the stock they purchased at .13, but again that is only a 5 cent per stock risk as they could just sell off the .13 cent share to pay for the opportunity to make quick cash on the back end. They could sell for a loss today but gain that cashflow back and invest elsewhere in the meantime and make more money than waiting it out with Zena. Again, you just aren't considering what can be gained with cashflow in other investments as you are thinking strictly in a very simple, no other variables or investments manner.
Covid19Investor wrote: If SP never reach .16, nobody will use his warrant. Even if SP reach .16, someone buying at today SP (0.08) will double his investement. For example, someone buy 100 000 x 0.08 = 8 000$. He can cash in 16 000$. I can't understand how PO it's better base on today SP (0.08). Am I wrong?
MJVigilante wrote: start with how much money you will invest and then your expectation. How do you maximize??? you will spend 16 cents today rather than 4 cents? and hold it for how long. Money is finite. explaining it further seems to be of little use. i guess there are 80 million shares just bought buy idiots? Idiots that can get access to deals the retail investor can't?
Covid19Investor wrote: @MJVigilante Do you and test to buy 1 share for .20 ? Today, SP .08 , that mean 2 shares for .16 1. Public offer .13 = 1 share + 1 warrant at .16 2. Sell share at .9 .13 - .9 = .04 .04 = 1 warrant at .16 3. Buy with warrant .04 + .16 = .20 Buying today SP at .08 .08 = 1 share .16 = 2 share Please someone explain to me... MJVigilante wrote: Sell your 13 cent share for 9 cents, now you have a 16 cent warrant that cost you 4 cents. If i have $1000 i can control 25,000 shares. at 9 cents only 11,111 shares for $1000.
expectation is SP > 21 cents in next 5 years - likely to 30-50 cents.
at 50 cents = $8,500 for $1000.(12,500-4000 cost to execute) or with 9 cent shares = $ 5,555 for $1000.
at current prices expectation should be about 38-40cents in the next 5 years, otherwise buy shares.
Covid19Investor wrote: Thanks @DanielDarden123 I resume, for .13 you get one share and an option to buy another for .16. If someone buy for .13, mean the odds are really high for him to buy another in the next 5 years for .19. With the PO, you have the privilege to paid 2 shares for .29. Today SP it's .08, if someone really believe SP will go higher, should it be better to buy 2 x .08 = .16 PO : 2 shares = .29 SP : 2 shares = .16 Please someone explain me where am I wrong. DanielDarden123 wrote: First, you should not be in the stock market until you have a basic understanding. The new offering allows you to pay $.13 for a share and a warrant which is exercisable for an additional $.16. You will likely only exercise the warrant if the share price is over $.16. Try to work with somebody who can assess the risks of investing here as there are many. Per share numbers are all that counts. Good luck.