The Financial Post article on the warrant placement is at the URL:
canoe.ca
I am curious as to what interest rate AIT plans to provide on
the warrants. Do you know what interest AIT will be paying?
IMHO 3.62 million warrants are a fairly large number. I am curious
to see if any of these warrant holders SHORT the stock for
the first year.
Being in Thailand, I don't get the Globe & Mail nor the Financial
Post, so I can't monitor the twice per month posting of SHORT
interest (in the Saturday paper), but if you can, it would be
useful to watch and see if AIT's name crops up in the SHORT
interest list for the TSE.
I believe if there are 50,000 (or is it 25,000?) shares SHORT
on a company listed on the TSE, the company's name appears in
the SHORT interest list.
I am interested in finding out because sometimes warrant holders
will SHORT a stock (to pay for their warrants). It also protects
them against a fall in the stock price. Of course the downside is
it prevents them from taking advantage of an upward move.
But for those who are long in the stock, it can mean selling
pressure on the stock, that creates resistance to upward moves
in share price.
One of my stocks (CAS) listed on Toronto had a lot of warrants
outstanding, and hence their short position was LARGE (greater
than 2 million shares SHORT). However the warrants had a clause
permitting CAS to buy back the warrants, which they did. As soon as
CAS announced the warrant buy back, there was a large SHORT
squeeze, and the share price jumped up over 20% in one day, as the
warrent holders (who were also SHORT the stock) had to scramble to
cover their position. The 20% jump in share price was great for
those of us who were LONG the stock.
I'm also curious if AIT has a clause "in the Warrants" permitting a
Warrant buy back by AIT? Such a buy back is not likely to be
exercised, but it may make warrant holders think twice about SHORTing
the stock. |
