Hi Ross, I posted just before I read your last post, so here goes. They can exercise the warrants at any price, but obviously no one would exercise them lower than the exercise price when they could buy them in the market cheaper. By the shares being at say, 1.55 or 1.60 they can exercise, and make a VERY small profit, or hold them for gains in the future. (if you have deep pockets) In this case they probably did it to put more money in the kitty, and they have deep pockets, so they can hold for later. In the case of the old management and friends, they probably could not hold on to them, not knowing when the price of the stock will go up, and so it becomes hardly worth it for them to exercise. Now if the stock were to go up .50, above the exercise price it may be a whole different story. Don't forget, when you exercise...you don't pay commission, but then if you want to sell them you do have to. So a few cents above the exercise price doesn't help the others much, and it only puts money in the kitty of the new management and........
Cheers
Shirley |
