Alto Ingredients Inc (ALTO)

[Rule_62]

Obviously they don't think that way, or they wouldn't of exercised 2.5M in July.

I think a big part of it is the restrictions that impede exercising and selling as long as they continue to hold warrants. They are not allowed to accumulate more than 9.99% ownership, so it's not like they can exercise them and keep the shares. I suspect their thinking is they've made an incredible profit (the warrants were pretty much free, and are now worth $10+ each). Were a disaster to hit (say a plant blows up) all that money is gone. There were still 4.1M warrants outstanding as of June 30th. They exercised and pocketed $25M in pure profit in July. While others might hold on to the remaining warrants come hell or high water, I suspect they see the remaining $16M in the bank as a very good thing (all pre-tax numbers, of course).