Post by
hrgagogo on Jan 06, 2010 1:47pm
Exercise of Warrants
IMO, unless something else is up their sleeves, Severstal will next exercise the purchase of their warrants. This will add additional cash to HRG. Any comments
Comment by
hrgagogo on Jan 06, 2010 1:53pm
Sorry, meant to say will convert warrants to shares.
Comment by
factory on Jan 06, 2010 1:57pm
How many warrants outstanding? When do they expire? What is the strike price?
Comment by
sellpubs on Jan 06, 2010 2:45pm
HRG.wt Exercise price of $4.00, expiry is Nov 08, 2010. Roughly 16M warrants trading.
Comment by
factory on Jan 06, 2010 2:53pm
At $4, they'll never be exercised. No worries of dilution. At 7 cents each though, its tempting to buy them. Just won't be able to get the volume to make it worth it. Ideally I'd like to buy 1M warrants at 7 cents (out of only 16M! it will be impossible) and dump them at 14 or 21 cents. But the volume to move them just isn't there. Otherwise it would be a good trade for sure.
Comment by
hrgagogo on Jan 06, 2010 3:12pm
Severstals exercise price is .64 as per the original equity finacing deal. Here is the quote from the PR release:40,674,540 warrants (the "Warrants") of the Corporation, each Warrant entitling the holder thereof to acquire one Common Share at an exercise price of CDN.64 until September 29, 2013.
Comment by
factory on Jan 06, 2010 3:31pm
Whoa! More massive dilution, those will be exercised for sure. Good info. Thanks.
Comment by
espressostretto on Jan 06, 2010 3:41pm
Your role here is blatantly evident. But I am more content/comfortable with a company when there are mild wet blankets than when there are baseless hypers and pump and dumpers.
Comment by
bart_dc on Jan 06, 2010 3:46pm
what is it you want:no dilution and a debt problem (as you clearly calculated)or dilution and the solving of debt problems...