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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: CalculatedRisk who wrote (1612)	7/16/1998 10:52:00 PM
From: Bill Wexler	Read Replies (1) \| Respond to of 4634

I'm trying to figure out if we've missed something... <<<(3) Borrowings under the loan agreement were $4,000,000. In connection with the loan, the Company issued 155,000 warrants to purchase an equal number of shares of its common stock. The estimated value of the warrants was determined using the Black-Scholes option pricing model. That value, $315,000, is presented as a discount to the loan and is being accreted as additional interest expense over its term. See Note 5.>>> How on Earth do they get $2 per warrant?