Please please read thisThe original plan was to hype the stock with dozens of press releases to trigger an early expiry date and force conversion of the warrants.
That failed.
Now read this:
Of the 4,107,850 Warrants, (i) 697,500 Warrants have currently an exercise price of $1.75 and expire on October 19, 2024, (ii) 2,380,350 Warrants currently have an exercise price of $1.25 and expire on March 7, 2025, and (iii) 1,030,000 Warrants currently have an exercise price of $1.25 and expire on July 21, 2025. Commencing on July 17, 2024, the exercise price of the Warrants held by holders wishing to participate in this repricing will be reduced to $0.75 per share.
Now there are 3 million warrants outstanding that up until now have been worthless while the stock is under $125.
Now those 3 million warrants are suddenly in the money.
If the stock is bid .80, exercising the Warrants and selling the stock produces a risk-free return of 6.25%.
At .90, the risk free return is 20%.
There are now 3 million shares overhead that weren't there before the Warrant repricing.
They wouldn't have been an afterthought unless the stock was above $1.25.
That's a fact.
A desperate attempt to finance has blown up.