Post by
Forestview on Feb 18, 2021 12:18pm
Warrants
Why did the June bought deal include 1/3 warrants, and this one is 1/2? Seems like we are more de-risked since June? I'd have expected the warrants would reflect that.
Comment by
Actuarial on Feb 18, 2021 12:36pm
June PP is with deeper discount - $4 PP when share price was $6; the new PP is only with 15% discount. $6 PP when share price was $7. For ATE, cash in advance is much more meaningful than worry too much about future deeper discount. You have to sweeten the bought deal, either at the beginning of PP, or later on warrants. In this case, ATE would like to secure the funding for PIII.