Pontus Protein Ltd V.HULK.H

RE:Warrants

[Blgvisclosed]

If you are like the early frontfundr investors, you got warrants @.30c

If the shares of HULK are trading higher than 30 cents, you execute your warrants (you pay 30c for each new share of HULK that you want. If you have 5,000 warrants you can buy 5,000 shares. Etc...

If the shares of HULK are trading LESS than 30 cents, you let the warrants expire...you dont want to pay 30 cents if the shares are trading at say 10 cents.


The pros of exercising warrants is getting shares cheaper than current market value

The cons of exercising warrants is that each warrant that turns into a share dilutes the ammount of shares on the market.


So say HULK has 40 MILLION shares outstanding currently...and investors cash in say 10 million warrants, there is now 50 MILLION shares ourstanding.    When warrants turn to shares, the shares drop, and sometimes in a BIG way (just think if 30 million warrants turn into 30 million shares over the course of a week or even 3 months, the outstanding shares have now doubled, basically cutting the value in half)

Thats why you NEVER look at just the outstanding share count of any stock, you ALWAYS look for warrants

Hope this helps