Mahin et al,
Now that I got the warrants and I start to look more carefully at the news, I have some questions (bad bad DD!):
News:
"The L. L. Knickerbocker Co., Inc. (Nasdaq: KNIC - news) announced today that Ontro, Inc., (Nasdaq: ONTR - news) in which it holds an equity interest, has completed the initial public offering of 3,400,000 Units at a price of $5.50 per Unit. Each Unit consists of one share of Common Stock and one three-year redeemable Common Stock purchase Warrant (the ''Warrants'') to purchase one share of Common Stock at $8.25 per share."
So if the stock goes to 150% of the offering price or $8.25, the warrant could be called. But then I have to pay another $8.25 to get one share of common stock. It does not make sense to me.
I hope that the warrant does not get called until the stock goes at least to 15, then my cost will be 2.375 + 8.25 = 10.625 to get one share of ONTR at 15.
Does this seem right or am I totally lost? |
