RE:RE:RE:RE:RE:RE:.4 of a Warrat? How did I get this wrong? Did it Change? pienter wrote: Schocor, Can you copypast this info?
I've worked with warrants more than once in the past, and I've never experienced what you write. A warrant is a right to buy a share, in this case you need 2 to buy one share, what will it cost you ? CAN1.71
If the price is lower than this 1.71 you buy your shares in the ordinary way , if the price is lower at the end of the term, (which is 2 years?), the warrant expires worthless. Theoretically, if the Nomad price goes up to CAN10, the warrant will have a value of about +/- CAN 8, and you can buy a new share for the CAN1.71, but it is likely that Nomad will execute the warrant early (before the expiration date). Nomad has no interest in not having the warrant executed, this is money they are already taking into account.
Having re-read the clause, I am going to ENTIRELY withdraw my concern. I missed ONE key work which was the word EXCEED. I am NOW a little worried that as soon as the warrants have an intrinsic value of more than 25% (more than $2.14) he company can force you to buy the shares instead of simply holding the OPTION/TRADING the option to do so....but this is less of a problem. Champage problems if I am being honest. Thanks pienter.