SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Gold/Mining/Energy : United Industrial Services (UIS/ASE)
UIS 3.210+2.6%Jan 9 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Frankly Speaking who wrote (76)9/14/1999 10:22:00 AM
From: VisionsOfSugarplums   of 90
 
A company that wishes to issue shares that can be traded publicly must qualify the shares by issuing a prospectus. In order to receive the cash for these shares sooner and set the price for the issue, the company will often issue Special Warrants instead of shares. These Special Warrants will later be exchanged for common shares of the company (or common shares and warrants) once a prospectus has been filed to qualify these shares and/or warrants for trading and approval has been received by the securities commissions.

This Press Release means that the company has completed its obligations under the financing, the Special Warrant holders can exchange the Special Warrants for common shares and common share warrants, and these shares are free trading. (The common share warrants are issued as well but I don't think they've been listed on the exchange for trading yet). It's normally appropriate to PR the approvals (receipts) by the securities commissions since there is typically a time deadline for qualifying the shares by prospectus (Sept. something in this case) and if the shares aren't qualified by that time, a penalty usually exists and the company would have to issue more shares (typically 1.1 for each Special Warrant) when the investor exercises the Special Warrant. In this case, the approvals were received in the appropriate time frame and the penalty does not apply.

Since this issue was done at $0.40, it isn't really dilutive (given current prices), so I don't think having the additional shares on the market is a risk to the market price (IMO).

Regards, t.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2026 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News