RE:RE:RE:RE:RE:RE:Anyone buying EXRO-WT? Up 70.45% today.The warrants will always trade at their intrinsic value plus a "time premium".
The intrinsic value is the price of the stock minus $1.36.
The "time premium" will gradually diminish until it's zero on the expiry date on September 20th, 2026.
The intrinic value today is 50 cents. ( $1.86 - $1.36 )
The warrants are 50 cents "in-the-money"
The offer on the warrants is $0.85.
The "time premium" is 30 cents.
At the expiry date, you will have a choice that's entirely yours.
You can either sell the warrants, if you havent already, or you can convert them into shares by putting up $1.36 allong with each warrant fot a share of Exro, regardless of the stock price.
If Exro is trading for less than $1.36 on that date, you let the warranyts expire worthless.
If Exro shares grow 54.57% annually for the next 3.83 years, you'll make ten times your money.
You obviously don't have to wait for that.
Right now the warrants have an 18.817 % premium.
the stock would have to rise 18.817% between now and September 20th 2026 for the warrant to trade at $0.85 on the expiry date.
That's essentially how warrants work.
They're cheap.