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Posted On: 02/15/2023 2:43:01 AM
Post# of 154873
Re: KenChowder #132880
Not a typo. It's 50 cents.
The offering was buy one share for $0.23, get a warrant, too.
The warrant is like an option to buy for a certain period in the future.
Note #3 says from closing of the offering for a period of 5 years.
During those 5 years, he can (but is not required to) buy a share for $0.50.
Why? Extra leverage. He pays the 50 cents and company receives the 50 cents when exercised, not now. If share price higher than 50 cents at the time, he can sell and make the profit or hold for longer term.
The deal is actually for 869,564 shares (either directly or through warrants), not 434,782 shares.
He bought 434,782 shares right now for 23 cents each, plus has the right to buy an additional 434,782 shares for 50 cents at some point in the future.
The offering was buy one share for $0.23, get a warrant, too.
The warrant is like an option to buy for a certain period in the future.
Note #3 says from closing of the offering for a period of 5 years.
During those 5 years, he can (but is not required to) buy a share for $0.50.
Why? Extra leverage. He pays the 50 cents and company receives the 50 cents when exercised, not now. If share price higher than 50 cents at the time, he can sell and make the profit or hold for longer term.
The deal is actually for 869,564 shares (either directly or through warrants), not 434,782 shares.
He bought 434,782 shares right now for 23 cents each, plus has the right to buy an additional 434,782 shares for 50 cents at some point in the future.
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