March 2021 $1 Warrant updateBased on the current SEDI disclosures, none of the insiders who hold the 2021 $1 warrants have yet to exercise their option to purchase additional treasury shares at $1. This option expires on March 12, so we have a couple more weeks to wait out their decision.
In the mean time it would appear that most of the trading in recent days has been a reflection of non-insider warrant holders entering the market to sell NPK shares they already hold at prices above $1, intending to replace these shares in their portfolios with new shares bought directly from the Company at $1.
There are now two large orders sitting open (45,000 shares at $1.20 and 65,000 shares at $1.25) but these will likely need to drop in order to get a fill in the current market. You will recall we saw 100,000 shares get sold at $1.09 in two blocks (80,000 shares and 20,000 shares).
That being said, this time frame offers the opportunity for a new investor to establish a reasonable position without driving the share price out of buy-in range. My sense is that we will return to seeing few shares on offer in the $1.10 to $1.30 range, and the share price will resume its steady progress upwards. With steadyily improving quarterly results through 2021 confirming the long term rollout plan is continuing, I expect by December 2021 to be looking back at being able to buy 20,000 shares at $1.20 as a source of regret as the Verde shares close out the year above $2.