So here's my update on the warrants. There are only 3 million total. They were a sweetener for Cowen on the uplisting, which means Cowen owns them all. As they've been trading around 1$ for quite some time, and if you look at the monthly chart and add the volume, I only count about 1.5 million shares traded since inception. One could argue that they are worth much more due to this light volume. If Cowen thought these were worthless, wouldn't they simply dump them left and right, and maybe get a million bucks for them. "Take the money and run" right? But no, these are only 1 year into the 5 year term and the stock is not even on any radars yet.
My thoughts are the warrants will be worth much...much more. As SUNW takes off, these will be "near the money" and on the next acquisition or other uber bullish news the they will finally be back in the money. Once they are near, or slightly in the money, they will likely trade for 2-3$ on speculation alone, and should the SUNW ticker eventually pop back into the 5-6$ range, these warrants will be worth that on a conversion basis but will likely trade even higher. Easy 2 bagger here, with luck double that.
Keep in mind the anti-dilution clause built into these.
It might not be tomorrow, but the way this company is growing, I've got a really good feeling about these longer term.
Long SUNW, SUNWW.
AI
