understanding the deal, more questions than answers for meDo I understand well?
1,75$ is for one share plus a warrant to buy half a share at 2,50$
So if the buyer exercises the warrant he will have 1,5 share at at average price of 2,83$
Yes it would increase dilution if warrants are exercised.
But doesn't it mean that the investor has the perspective that even at 2,83$ it is a deal.
This investor should expect to at least have a final exit price of double 5,66$ ?
So why would this be bad news? Except for short term traders
In a globe and mail article they explain that warrants are good if you invest in a bullish market.
Why would this be a bad news for us if you are here on the long run?
Thanks for you help