GREY:NEVDQ - Post by User
Comment by
Notgnuon Apr 12, 2021 7:53pm
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Post# 32982539
RE:Impact of Reverse Split on Warrants
RE:Impact of Reverse Split on WarrantsThanks Arbourmark. This is exactly what I thought too... Simple. All the rest is a red herring or obfuscation of some sort.
patchh. You seem to admit to not knowing how warrants work and then go on to offer up all manner of complication...why?? There is no need.
The warrants are simply a tradable call option of sorts. They can be freely bought and sold and carry higher risk because they can expire worthless even though the company could remain in business but trading at a share price that is below the option call price.
I am still waiting to speak to Rich and will triple confirm this for clarity and post the answer.
N.
Arbourmark wrote: Warrants are proportionately impacted exactly the same as common shares in the case of a reverse split.
Lets say you own 100,000 warrants with a strike price of .22 cents when exercised.
At some point before you exercise the warrants the company announced a reverse split at 10:1
your warrants would now be reduced to 10,000 warrants with and exercise price of $2.20.
I trust that explains how a reverse split works for warrants, it impacts them exactly the same. In either case you would need to pay $22,000 to exercise 100,000 warrants at .22 cents or 10,000 warrants at $2.20