Humbly report, Dongsoo, regarding what price will MVISW be if MVIS goes to $90.
A warrant is a certificate issued by a company giving the holder the right to purchase securities at a stipulated price within specific time limits or with no expiration date (perpetual warrant).
Microvison did specify an expiration date and price:
Each warrant gives the holder the right to purchase one share of Microvision common stock at $12.00 per share for a period of five years from the August 27, 1996 offering date. The warrants are callable at $0.25 per warrant if the common stock trades at $24.00 per share for 20 consecutive days.
(http://www.mvis.com:/html/investors.html)
So, since Microvision will call the warrants when the common (MVIS) trades at $24 per share or more for 20 consecutive days, by the time MVIS is $90, the present warrants will no longer exist. If MVIS is not trading at or above $24 per share for 20 consecutive days by the time the expiration date arrives, the warrants will become worthless.
It is, of course, possible that MVIS will go from below $24 to $90 within twenty days, but I'm not counting on it.
By the way, I sure hope you didn't go short when you suggested it!
Cheers,
Svejk
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