"The conversion ratio is the number of warrants needed in order to buy (or sell) one investment unit. Therefore, if the conversion ratio to buy stock XYZ is 3:1, this means that the holder needs three warrants in order to purchase one share. Usually, if the conversion ratio is high, the price of the share will be low, and vice versa."


I thought one could simply exercise warrants by conversion?

Doesn't that explain the drop in price, because it creates more shares in the total float, thus more dilution? Did Sheldon or Pinetree have enough shares for this to be possible?

Am I wrong in my line of thought? Corrections welcomed.

Cheers!
Abel00