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To: Steve Felix who wrote (117952)	2/19/2014 2:45:22 AM
From: Elroy	Read Replies (1) of 118717

If they don't trade together why would shorts have to supply warrants? It isn't like they were attached to stock owned on a certain date. Come on Steve, you're not thinking about this. Warrants were issued to all long MHR holders on a specific date back in September last year. At the time 30% of the long shares were shares bought from shorts that had borrowed them from actual long holders. Those 30% received warrants. From where did these additional warrants come? Does the short synthetically create them? Essentially we got a dividend. A dividend with no current value. Yes, the warrants are $8.50 strike call options. Does a person short MHR have the ability to just create an $8.50 call option and give it to the MHR shareholder he sold to? Maybe. If it were a normal cash dividend, he would have to poney up the dividend. But that's just cash. Does a short just poney up his own $8.50 call option/warrant?

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