The warrants issued in the private placement have value. This value should be subtracted from the $5.2 million that was raised to arrive at the effective price of the common shares that were issued in the private placement.
Using the Black-Scholes model for valuating warrants and using the data provided by ADTM in the SEC filings, the effective price of the common shares issued in the private placement drops significantly to about $1.80/common share, substantially below the market price at the time.
and why is ADTM issuing significantly discounted common shares in private placements?
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