The Warrants have to be exercised and shares issue
Post# of 32642
(Total Views: 756)
Posted On: 09/23/2019 9:52:25 AM
The Warrants have to be exercised and shares issued in order for them to become part of the float. Just because the warrants reach a value beyond the strike/exercise price, they will not automatically be exercised.
It has been discussed before that many will exercise their warrants as soon as the warrants are "in the money". That way they can start the 1 year holding tax clock to go from 30% capital gains to 15% and then sell.
I don't believe the most recent and cheaper rounds of warrants are for sale to the general public. That was just part of the cash raise and can be exercised only by the investor. I have not read the holding time for those.
On the other hand, the warrants issued during the Sound Concepts acquisition are traded publicly VERBW. These are the more expensive warrants to exercise, but if you think that the business is extremely undervalued, like I do, then holding these warrants in a Roth IRA, I wont worry about the tax issues and can hold these through any forward splits, and the exercise price will be chump change for the number of shares I can own down the road. VERBW Warrants will not expire until March 2024.
It's just my opinion, but i believe we get bought out WAY before they expire.
As investors, were in a pretty remarkable situation that not everyone understands..............yet.
It has been discussed before that many will exercise their warrants as soon as the warrants are "in the money". That way they can start the 1 year holding tax clock to go from 30% capital gains to 15% and then sell.
I don't believe the most recent and cheaper rounds of warrants are for sale to the general public. That was just part of the cash raise and can be exercised only by the investor. I have not read the holding time for those.
On the other hand, the warrants issued during the Sound Concepts acquisition are traded publicly VERBW. These are the more expensive warrants to exercise, but if you think that the business is extremely undervalued, like I do, then holding these warrants in a Roth IRA, I wont worry about the tax issues and can hold these through any forward splits, and the exercise price will be chump change for the number of shares I can own down the road. VERBW Warrants will not expire until March 2024.
It's just my opinion, but i believe we get bought out WAY before they expire.
As investors, were in a pretty remarkable situation that not everyone understands..............yet.
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