Hi Wink, this often happens, as was suggested in an earlier posting, just before something of greater significance is about to occur. You have to admit that if you were one of the individuals who is holding those warrants, you would pleased to be handed an opportunity of this nature.
The biggest item of significance, that I can see, is that it forces the warrant holders to execute quickly upon a sustained upturn. This generates cash for the company in a time frame the company can bank on, possibly to be used as it is acquired or to be used to help acquire some form of bridge financing to complete a deal. In addition, the extension itself puts the company in a good light, from a future investor's perspective, because they have made an effort to ensure profitability for the investor.
Then there is the potential impact on us, the "regular" shareholder. The negative is the dilution factor, the positive is the likelihood that it was done for a bigger reason, I think. That being to generate the cash to complete something else. Keep in mind that this is just me making some assumptions/guesses, this is NOT known fact.
Just my thoughts and opinions.
Salut,
Leigh McBain |
