I am as anxious as anyone to have our share price trundle out beyond the $0.52 threshold but I have reservations about whether or not warrants will get exercised.
- If I am not mistaken, the warrants are and were attached to the 'infamous' financing.
- Many believe that a large number of the participants in said financing 'shorted' the stock before final pricing was established.
- Short positions were covered with the purchase of shares through the financing and the warrants came along as a sweetner, and effectively at no cost.
- Assuming #1-3 are essentially true, there are warrant holders with absolutely nothing to lose so why would we assume or like to believe that warrants will exercise once the SP goes comfortably beyond the exercise price?
- If I hold warrants and given the volatility of this stock why would I not hold until there is a considerable profit to be realized ie $2.00 or beyond?
It is a nice thought that warrants will exercise as we achieve and exceed the $0.52 price but in reality why would anyone expose themselves to the risk when they could wait until it is considerably above $0.52 and then exercise. And at that point, watch out for the selling pressure.
Just my $0.52 !!!
Hogan
