Vext Science Inc C.VEXT

More on the Warrants

[retiredcf]

I've noticed this year that with all the new investors who decided to tip toe into the markets because they were unable to do normal things thanks to covid, there are a lot of people who own warrants but have no real idea how they work. As a result, they sell them for pennies profit.

I stumbled into these after BC2's recommendation. These warrants have a strike price of $0.45 and an expiry date of 2 November 2023. This morning, VEXT has dropped down to $0.81 which means that the wts have an intrinsic value of $0.36. In other words, that's what they are worth today. But if you believe that the SP of VEXT will be considerably higher in mid 2023 than it is now, no one should be selling any of their warrants at all. If one of the penny grabbers does, then snap them up and salt them away. Come back in 2023 and you should be a very happy investor. All IMHO of course. Happy investing.

[Rc0gburn]

Retiredcf, the warrants are indeed cheap, but they are going to act more like stock if VEXT keeps rallying. At a stock price of 87c, they are in the money by 42c, and so will trade increasingly in line with the stock (.90 delta) as time goes on and the stock stays strong. However...They have 3 years to maturity and right now there is only 8c of "time premium" in the price . Option Calc

[retiredcf]

Until recently, the wts were trading essentially without any time value; now we're at 8 cents. But given that the entire US MJ sector should prosper over the next few years, IMHO, they deserve more of a time value. Once we're 6 months away from expiry, then that value should pretty much disappear and at that point, the wts would trade in lock-step with the shares. But whether it's in