RE:RE:Full Potentialninja123 wrote: Kha,
re: upcoming warrant conversions .. do you have readily availlable info re: strikes/size?
There are ~104M outstanding warrants of which some 86% (strike = C$0.29) will expire in Q1 - 21 and the remaining ~14% Dec 2022 (strike= C$1.15). These 104M o/s warrants are already included in the fully diluted share count. Hoping that Largo can build up a solid cash position from now to Q1 -21 to have good alternatives on the table. Not sure about the BoD decision on the subject but the following was the conversation between Cooperman and Cleave in the Q4-19 CC:
Leon G. Cooperman, Omega Advisors, Inc. - President, CEO & Chairman [19]
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And finally, I believe, recently, you had over $100 million outstanding warrants, exercised between $0.29 and $1.15. It seems to me that with our cash position, and I'll be interested in hearing how you answer my question, whether we should not try to be opportunistic and get rid of these warrants for very little money, which will be very accretive to the value of the company that remains….
Okay, good. Okay. What is your reaction to my comment about the warrants? In other words -- let's face it, this company earned USD 300 million 2 years ago. The market cap, exclusive of the warrants, is well under that. You have a strategic resource. We're all very depressed now because of problems going on in the world. The business is worth much more than it's trading for. If we can get rid of these warrants, it's an overhang that would take away value. Are you guys at the mindset, given your low cash position, of trying to clean up some of these warrants?
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Ernest M. Cleave, Largo Resources Ltd. - CFO [44]
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I don't think that the Board has made a decision at this stage or to actually use cash. Until we know how the world is working, we could look to do that. The mechanism is always open, and a lot of the warrant exercise at the beginning of the year were done on a cashless basis, so we would encourage more and more of that. But at this stage, the Board has not discussed using the company's cash to actually buy back warrants...
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Leon G. Cooperman, Omega Advisors, Inc. - President, CEO & Chairman [45]
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I'd recommend you guys consider that a little bit…..