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To: Elroy who wrote (117965)2/19/2014 10:28:27 AM
From: BiomavenRead Replies (1) of 118717
 
>>Once activated they should have a price similar to a long dated MHR $8.50 call option.

Not a long-dated option, because I think you only have 30 days to exercise once they are declared effective.

>But I think MHR wants the cash they would generate, so once they can I would expect them to activate them.

Assume MHR trades at $10. They can almost certainly sell shares at more than $8.50, so the company would be better off not using these warrants. OTOH, management owns a slug, so it would be in their personal interest to activate them rather than sell shares on the open market. (I personally think it is likely that they would in fact activate them).

Peter
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