Supreme Cannabis Company Inc. (The) T.FIRE

Warrants

[Highrider69]

Did someone seriously drop $112K to buy 1.6 Million warrants at 7 cents that gives the holder the rights to  shares at 23 cents each?  Shares of the company are a much better buy than the warrats at this time.

[aurorahigh]

Depends on your timeline and investment style.  If Fire goes to 1$ ( achievable within next Q or two) the warrants would have an intrinsic value of .77 Sp up 5 fold, warrants up 10 fold from today’s closing prices. Unless I’m missing something I think both investments should do well going forward but  warrants are still attractively priced to take advantage of any upside to the sp.

[johnale]

Given the three years before expiry on the warrent, it's not a bad bet. It's more a bet on Beena and what she can do in that timeframe.  short term the warrent is already priced at 7 which is 30c equity.  equity is trading at almost half that.... so you get a .71% discount by buying the equity today.  the debs at 87 are pricing at 24.8c equity - also a premium but you

[aurorahigh]

Very true the underlying security needs to perform well to benefit however your calculation on the warrant doesn’t include any timevalue which still makes them an attractive alternative to the shares. Debs I’ve never looked into so can’t comment there. End of day you’re right there are a few ways to play this.  I’m pretty confidant in next fins out Feb11.  Will be interesting to see

[Method]

Another way of thinking about it, is that your interest/accretion debentures are like getting 5 cents a share reduction a year on the conversion price. They are definitely more attractive than the equity and the warrants implied vol suggest the debentures should be a lot higher than par.