Mega Brands Inc MBLKF

anyone exercise warrants?

[kmu2013]

Did anyone choose to exercise per the cashless option?

[llennn]

Seems like its in a strange place, don't let it toy with ya

[FFHwatcher1]

I don't really understand why I would. Even if they start a dividend, that will take time, pop the share price and I will convert then. I don't fully understand why the major players did it so early.  I asked them and they said it was to give the company more financial flexibility and release the dilution discount on the stock. So far, so good.  Not sure if I would do the

[Godfather1]

If you're bullish on the stock I dont see why you would exercise the warrants. Makes no sense because there is more leveration with the warrants. Warrants should do better than the common if the shares continue to rise. I would and I am keeping my warrants.

[llennn]

I would be cautious with the warrants as the majors have converted which makes the shares the main concern. Girls construction category are becoming in style for these toy companies (Great PR). Your warrants have the gearing but they come with a in case of sale agreement. Watcher clarify this, your on the outside!

[kmu2013]

i agree, ran a spreadsheet on this. works out to be roughly 3x levered.  Only points thats convincing me to sell is that there will be less liquidity for the warrants post May 10.  if you're planning to hold until expiration date then it doesnt really matter.