RE:Warrants... If the release of filings in 2020 is any indication, the timing for these warrants could be fantastic for the company and shareholders. If so the annual filings for 2020 and the Q1 filings for 2021 should come out in May ....about a month ahead of the warrants.
June 11, 2020 - TheNewswire - Vancouver, B.C. - Luff Enterprises Ltd., formerly Ascent Industries Corp., (CSE:LUFF) (CNSX:LUFF.CN) ("LUFF" or the "Company") is pleased to announce that the Company's Board has resolved to enter into a supplemental Indenture with National Securities Administrators Ltd (the "Transfer Agent"), to amend certain terms of outstanding warrants (the "Supplemental Indenture"). Pursuant to the Supplemental Indenture, outstanding warrants with expiration dates of June 19, 2020, June 21, 2020, July 24, 2020, August 3, 2020, and January 4, 2021, will be amended to reflect a reduced exercise price of $0.05 per warrant and an extended expiration date of June 24, 2021 (the "Outstanding Warrants").
The total number of Outstanding Warrants is 88,428,742. If all of the Outstanding Warrants were to be exercised, Luff would receive net proceeds of $4,421,437, upon the issuance of 88,428,742 underlying common shares of the Company.
While there would be some dilution, the $4 million in capital raised could be used for expansion or an increase in production (or an acquisition). As exercising of these warrants is unlikely to happen without some positive news, as Max said, this could see the sp for LUFF certainly exceed Morningstar's Fair Value of $.07. Could it even be reasonably positioned to move toward the 1-star speculative valuation of $.28.
With less than 2 months to filings there is lots to anticipate.
GLTE!!!
Maxdude wrote: There are approx 88M warrants coming due by the end of June. This will put some pressure on the share price and if the company wants to cash these, then there would have to be some positive developments to encourage investors to convert these. There are currently approx 400M share o/s....fully diluted.