Warrants Gone: Now What?So we are done with these warrants. It is not every day that a junior company will let go such warrants. To me, this is indeed a major statement of independence. Cancelling the warrants means Nextleaf is telling its major stockholders that the paper it gave them is now worth nothing. Ouch.
Now either Nextleaf needs the money or not. This is one thing we may soon find.
Worst case scenario: It issues more stock at current share price. But Nextleaf could possibly have done that by repricing the warrants close to current share price. If Nextleaf issues stocks to another party, even with warrants, that might be slightly positive since the company will get to choose its new partners. But, meanwhile, there might be loose-hands who will mistakenly start selling, thinking Nextleaf is now starved for cash with no funding partner.
More positive: I keep buying because I think Nextleaf will some day announce a major partnership, which will increase the share price, before it issues stock at that higher price. Timing, I do not know. The whole market is under pressure (all pot stocks are loosing 2-5% today) and possibly about to crash. So I would not be surprised that this partnership takes a little while to be announced, after the correction. Probably a good thing, since Nextleaf has a few projects in the making right now. So I do not mind waiting. To me every passing day now means Nextleaf does not need the money. A good thing.