Robert, as I understand it, the warrants are repriced for the benefit of the company, not the VSE. As a regulatory board, the VSE gains nothing and is for all intensive purposes, non-profit. GHE and any other company can reprice options or warrants, because it is within the regulations of the VSE. I suspect GHE put that condition on the warrants, not the VSE, to force the warrant holders into exercising to raise capital quickly. If the warrant holders pass on the deal, they will then be able to float a pp at around the same price to raise capital, having given the preferred warrant holder the first option on the deal. If this happens, financing will take longer. Hope this helps.
Hugh |
