Something to ponder Something to ponder over the weekend.....
it's great that nxo has traded up in the last little bit testing the high .50's. At the same time it is not surprising that the share price has drifted down slightly.
thinking about the fact that there were over 7.5 million shares bought last June in the companies last private placement. There are also over 7.5 million warrants from the same financing. The warrants were recently repriced at .36 c from their original .60 c.
The original financing was done at .41 c a share for a share and a full warrant bringing in over $3 million of much needed cash to get the team through the last year. Thinking about the timing, this was not long after RG came on board so the investors in the pp were likely quality investors.
so now the share price is finally at a price where it makes sense for them to sell the original shares from the pp and exercise the warrants. At anything over .41c a share they are making money on the original shares and getting the warrant exercise shares at a discount.
so that means there are potentially 7.5 million shares that have started to sell through as the price came up into the mid .40's.
we are now four days in a row closing over .45 c, another six days and the warrant exercise gets forced. Thirty days to exercise the warrants putting roughly $2.7 million in the treasury !
im guessing maybe half of the original pp shares have traded through so a few more million to go before supply starts to tighten up.
anyway, just my rambling thoughts on a Friday afternoon. Do your own DD and have a great weekend !