RE:RE:CVE WarrantThe math doesn't work. Who would pay 4.20 for a warrant plus 6.54 to exercise it? That's a total cost of 10.74 per share, for a share that trades at $8.10? Makes no sense at all.
Husky4000 wrote: FairMount wrote: The warrant is trading at 4.2 now. What happens if I subscribe for the common share at an exercise price of 6.54? Does that mean I have to pay 6.54$ to buy each common share? Or I pay the difference of 6.54 minus the warrant price? Any clarification - much appreciated!
The warrant gives you the
right to buy CVE at 6.54.
Example: You got 1000 warrants trading at 4.20 worth 4200$
You decide to buy
exercice them. So you put 6540$ of your money. In exchange you got 1000 CVE valued at 8100$. If you were to sell, you would have a profit of 8100-6540=1560$.
So, which one is better? 4200 in warrants or 1560 in sharevalue?