Sigma Labs Inc (SASI)

[maxinkuckee]

You would be making a big mistake in the scenario you outline.

If you bought 3 warrants now at $1.00
and sold when the share price reached $6.00, you would receive about $7.50 ($6.00 - 4.00 + 0.50 premium x 3).

That $7.50 would enable you to buy 1.25 shares of common at $6.00.

If the common reached $100, you would realize $125 for your 1.25 shares.

If you held onto the 3 warrants instead of selling at $6.00, you would realize about $288 when the price of the common reached $100 ($100 - 4 x 3). We assume in this case the premium would be virtually nil when the pps reached $100.

It makes no sense to sell the warrants simply because the common exceeds the $4 exercise price. You need to consider that you are holding 3 times as many warrants for the same buy in price as one share of common at current prices