RE:RE:RE:why isn't the share price up?If you read the press release it states this the second bullet point down, followed by third, and fourth after the header. Here they are point 2, 3, and 4. They should answer your question for you:
- Shareholders can elect to receive $0.15 in cash per Common Share AND receive two Warrants
- Alternatively, Shareholders can elect to retain their Common Shares AND receive two Warrants
- Each Warrant entitles the Shareholder to purchase one Common Share of Calfrac for a period of three years at a price of $0.05 per Common share (on a pre-consolidation basis)
hattar12 wrote: how many shares shareholders cn buy on 2 warrants, will there be limit?
BobTheKnob2 wrote: $0.15 + 2 warrants does not mean the share price will raise above $0.15 unless there is concensus that there will be a higher priced offer. The warrants always will have some value, but only once they are in your hand. The question is will the $2.50 per share (or $0.05 before consolidation) hold and trade above that price to allow the holder to exercise.
Presumably there is a 50:1 consolidation in the works for those that do not receive payout in the $10MM pool of cash to buyout shareholders and are left holding the bag after the debt holders have been given full value.
From a shareholder perspective, the Wilk offer is still the better offer. From a management perspective, their offer is the better one, as they will keep their jobs.
leo101 wrote: getting 15 cents and cash plus 2 warrants exercisable at 5 cents should nudge it over the 15 cent share price, no? or will the warrants be worthless after a big share consolidation?