I can think of two good reasons. 1) it provides
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Posted On: 06/14/2024 7:47:39 AM
I can think of two good reasons.
1) it provides those with warrants that are about to expire a way to help the company fund future trial(s) and still retain the same number of shares (i.e. shore up their investment).
2) to get the benefit of a significant tax write off while maintaining the same number of shares. I know there's the possibility of a wash sale, however I'm not sure if it applies to exercising warrants given that the shares are not readily available and there may be a 30-day gap from the time they sell their shares and receive their new shares, but I'll leave that up to the tax specialists on this board to argue that one. And, not everyone will report it on their tax return if it does apply. After all, they're selling shares based on inside information.
1) it provides those with warrants that are about to expire a way to help the company fund future trial(s) and still retain the same number of shares (i.e. shore up their investment).
2) to get the benefit of a significant tax write off while maintaining the same number of shares. I know there's the possibility of a wash sale, however I'm not sure if it applies to exercising warrants given that the shares are not readily available and there may be a 30-day gap from the time they sell their shares and receive their new shares, but I'll leave that up to the tax specialists on this board to argue that one. And, not everyone will report it on their tax return if it does apply. After all, they're selling shares based on inside information.
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So there is no good reason to sell at .14 at this point to raise funds for the warrant exchange
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My comments are just my opinions and should NOT be taken as investment advice.
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