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Non-Tech : Any Stock Warrants

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To: Joe Copia who wrote (260)4/17/1998 1:24:00 PM
From: Eric Maggard  Read Replies (2) of 1916
 
NTSTW

What I was thinking was that you pay $4.5/warrant for 2 shares of common. This way when the stock is around $4.5 the warrants would be "in the money" and fairly valued at $4.5. In that case you would only be paying $2.25 per share, instead of $4.5 now. With the warrants only getting one share of the common, if the stock was at $4.5 the warrants would probably be fairly valued around $1. So, looking at the price of the warrants vs the common, the common, IMO, would be the way to go, because there would be almost a 4x increase in price to a 2x in the warrants.

Hope that makes sense.

Eric
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