RE:thoughts?I suspect that it was completely different people that participated in that financing. That bought deal financing took place in July of 2021 and included the half warrant at 50 cents with a 3 year term. It was also one of the only times I've ever seen a US investment banker (AGP) participate in the distribution on the US side, so some or maybe even most of it went to a wealthy person/entity in the USA.
I'm pretty certain that Birch Hill didn't particpate at all, because there's no mention of them back then, as is required by reporting rules for any entity that owns more than 10% of a company. One year after this financing is when Birch Hill got heavily involved in every financing and the terms eventually changed to the much more favorable convertible notes only, as opposed to the 1 share + half warrant terms. Keep in mind that Birch Hill has had a board seat for a very long time and that board seat allows for a much deeper insight into what's happening.
The last trading day before those warrants expired was July 26th and the stock was still trading at 50 cents, so the warrants were exactly 'at the money.' Whoever had the rights to those warrants made a conscious decision at that time, to not lay out an additional $5.5mm for shares at a price that those shares were currently trading. We'll never know but that entity probably decided that they had enough shares already and didn't want to increase that amount by 50% that the half warrants represented. Maybe they had all of their dry powder in gold, who knows.
The sneaky good thing about all of this is that I think it's safe to say that that entity with those warrants, was leaning more towards the 'weak hands' status of a typical shareholder. I say this because they didn't take the opportunity to gobble up a huge position in one fell swoop. The reason why this could be important is because those 10.9mm shares being held by 'weak hands,' would most likely mean that all of that stock would be bleeding on the sell side for a very long time.
So basically we not only greatly reduced our fully diluted share count, but we also avoided a mountain of stock that would have been a huge headwind for a long time. Just to put into prespective how much we reduced our fully diluted share count with those 10.9mm warrants expiring, all of the DSU's and RSU's combined that have been issued to executives totals about 9.4mm shares. Anyways, that's my take on things.