Post by
Soccerguy on Aug 05, 2018 9:38am
Do warrants cause dilution?
I am holding the first warrant with a strike price of 1.75 and the new warrant has a strike price of $1. If I understand correctly, once the strike price hits you can exercise your warrants for shares. Is that correct. If so, would there not be more dilution if this occurs with the warrants. Thx.....
Comment by
TruthAboutHip on Aug 05, 2018 11:17am
You can exercise your warrants whenever you want to regardless of the SP, but you would never really want do so until the warrants are "in the money". This means once they SP is equal to or greater than the Strike Price. Dilution will definitely occur once any warrant is exercised as this creates new common shares and adds to the number of outstanding shares.