Newstrike Brands Ltd NWKRF

Warrants

[SKL6600]

Damn these A warrants are tough to get a hold of. I am trying to buy and .14 cents but nobody wants to sell to me. I lost my butt hard on the originals but I am holding A warrants till they get into the money. All other warrants in the money are $3-$7 right now. Imagine that.

[quinlash]

The warrants trade really slowly, they are usually held by long term investors who don't trade that much...  

[Jack4000]

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[TennisStar]

Volume is brutally low on the original and A warrant. I messed around with it this morning buying and selling 100 shares doing a quick test. My 100 "test" appeared to be only volume for quite some time....$2 (plus $7 fee) fun.

[Checkenginelite]

I think I'm going to vote yes to hexo deal seams like a good deal.

[mozzarella]

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[Checkenginelite]

Wow mozzarella you read my mind, that's why I decided to vote yes we could be worse off if we dont take the deal, the marijuana scene right now is consolidating and if you dont start teaming up with someone big like Hexo were probably going to be left in the dust and may take years to recover from that. I'm probably going to buy more wt.a's I'll stay way from the originals maybe

[flyboy27]

------no volume .  you cant expect much,     stone walled

[SKL6600]

Everyone is waiting to see if this deal is actually going to happen I think. I think the A warrants are safe and will be worth a lot by this time next year. The issue is if HEXO gets bought out below their strained price again, then what? Lol

[SKL6600]

They still have 10 months but I sold some of them. I was really worrried they would go to .01 cent and nobody would buy them. Live and learn. I am putting th rest of my money in A warrants and I am going to wait till HEXO gets into the $20 range and then see what my options are.

[Jack4000]

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[SKL6600]

Jack4000 I love your enthusiasm man. I’m thinking if HEXO goes anywhere close to $15 the A warrants will be worth a lot more than just 4 times they are now so I am losing up and holding to till I recoup my losses which might be massive in the originals. Here is to me praying.

[flyboy27]

----SKL there are many in this predicament.   your not alone.  things will change 

[Jack4000]

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[Checkenginelite]

I think as soon as we turn green I'm pulling out I just cant stick around for the 0.06 conversion I'll just jump into Hexo and hold long there or if the deal gets ink I'm not sticking around it's to risky. I missed out on a lot of other stocks I need to make some money. That's just my opinion, thanks for listening bye bye.

[SKL6600]

Jack4000 you seem pretty knowledgeable about warrants. We talked about after the conversation that even though we will have way less warrants they will be worth the same. So let’s say you 100000 warrants become 6332 then how would you sell them for a profit? Unless the warrant price is all of a sudden 16x higher. That is what is confusing me now. Thanks in advance.

[quinlash]

Try googling how leverage works with warrants. Its the buying power of your money that makes the difference. You get a lot more warrants than shares for the same investment amount. Also try not to look at everything all at the same time. Think about it strictly in HIP dollars first. Once you nail down how the warrants produce the larger (much larger) return then start digging into the conversion

[SKL6600]

Quinlash I see what your saying it’s just confusing with the conversion for me. The stock is so straight forward and easy but the warrants are just strange. If we were getting .06332 of a HEXO warrant price then I would understand but that isn’t how it works. Thanks.

[quinlash]

I checked with IR, the hip warrants will not be part of the hexo warrants, after the merger the hip warrants will remain as separate warrants to hexo (you can confirm with hip too). So there is no conversion of a hip warrant to a hexo warrants. The hip warrant simply becomes a new warrant as part of hexo. That make sense? The strike price will convert over as jack noted. If you picked up a

[SKL6600]

Quinlash I have also talked to IR a few times and I am u derstanding everything that you are saying. Can you make me understand though how they can make 6332 warrants be as valuable as 100000 warrants at .15 cents? For 6332 warrants to be the worth the same as 100000 warrants wouldn’t the price have to be $2.40? This is the only thing that is co fusing me lol. I apologize but I must be an

[quinlash]

Just apply the conversion rate to the current cost of the warrant you are looking at. So if you think ahead, after everything is converted to hexo, the 14.5 cent warrants with a strike price of 1.00 would be trading at $2.28 (.145 / .06332) with a strike price of $15.80 (1.00 / 06332)

[SKL6600]

Quinlash ok we are on the same page then. That hurts us a bit as well then beciase even if the price gets to $16 our warrants will probably be worth like $3-$4 so excersing then wouldn’t make sense either. So the only hope we really have is if they take off before the merger then I guess? Thanks for the information.

[mozzarella]

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[quinlash]

Once the warrants move over and the pricing etc is converted they can be considered a new hexo offering, the conversion only gets applied once. Just apply the same calculating as you would any other warrant from there forward.

[Ggeeman]

if the sp gets to 16 on hexo after the deal ( for example purpose ) , our A warrants will be ( . 50 cents plus !!) ... Why would you not buy at .14 or even .15 ... ? .. our hexo price conversion at that point would be somewhere around 8 bucks

[quinlash]

With all the chatter earlier about warrants calculators i finally researched them and opted to build my own. Everything tracks great.. until merger NR then the warrant prices tank. Starting to wonder if people don't realize the HIP warrants are not being blended with hexo? It's the only explanation i can find. If the warrants ever had a good change of hitting its with hexo. Warrant prices,

[SKL6600]

Who is going to want to buy warrants that are $8 though when the SP is $16? They should have never converted the warrants in my opinion. 

[Ggeeman]

a lot of investors will . Especially those who can hold ! (Institutions )

[Jack4000]

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[mozzarella]

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[quinlash]

Maybe some day Mozz... until then a diet of stress, worry, coffee and smokes... [/quote]

[mozzarella]

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[quinlash]

No worries mozz... i have multi vitiams... somewhere :P [/quote]

[Ggeeman]

not true buddy.. in fact , the closer the common shares get to the strike price , the more the gearing effect kicks in on the warrants , and it will start to track the actual SP of the common shares more accurately

[Jack4000]

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[SKL6600]

Oh ok thanks. That would be worth it then for sure. Thanks

[Jack4000]

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[Jack4000]

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[quinlash]

Keep a close eye on the originals. They seem to be trading under value at the moment and if something changes with the deal in a big way the originals will move fast. Not saying to buy... saying do some homework so you react faster than the market in the event something changes... whoever did that on the hexo NR could have loaded on warrants for next to nothing then dumped enough to cover their

[Jack4000]

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[quinlash]

Take a look at the 30 day chart for the A-Warrants, they didn;t go to .14 very often, you may fill at .14 eventually but odds are you will need to revise the order to .145 if you want in today. GL with it ! Q