RE: RedfoxPen,
don't know what would happen. A warrant gives you the right to do something but its not an obligation on anyone other than on the company to issue a share on conversion.
In the event of a takeover I can see a terrible scenario where the warrants are out of the money and could be worthless. ON the other hand there could be a strong case made that the warrants have an intrinsic value, as shown through a black-scholes analysis, even when they appear to be out of the money (this is reflected in the fact that there is time value of money in the warrants thats why they trade above zero when in fact they are out of the money).
Having said that, you raise interesting legal issues. Also worrysome as all of the warrants are out of the money and in a worst case scenario could stand to lose a lot. May also mean that an acquirer could extend the terms of the warrants and allow an exercise into the new company. That could be a lucrative outcome.
As for acquirer - I seem to think that CBJ will be doing some acquisition (see recent release) but tend to agree with you that at these prices its a question of time - the knights are getting on the horses.
So, all to say that I do not know what would happen. Perhaps someone who has gone through such a situation can post.
best wishes