OK, dumb question time!
Can someone explain how warrants work. This is from the most recent 10-QSB filed 4/19/99:
During July, August and September 1998, through a private placement offering, the Company issued 8,002,000 shares of its common stock at prices ranging from $.2580645 to $.50 per share, realizing total net proceeds of approximately $1,939,000. Additionally, the Company granted 929,370 shares as issuance costs and 6,500,000 of warrants to purchase shares of the Company's common stock. These warrants were granted to investors, in addition to the shares they purchased, and as payment for issuance costs. The warrants are exercisable as follows: 5,300,000 warrants at $.80 per share, 1,000,000 warrants at $1.25 per share, 100,000 warrants at $1.00 per share, and 100,000 warrants at $.50 per share. All of the warrants expire in May 2000.
What is a warrant? And how do the exercise prices work?
Thanks in advance,
heatseeker |
