Alto Ingredients Inc (ALTO)

[Rule_62]

What I found really interesting about this deal is the existing warrant situation. There are a bucketload of Aventine warrants, all of which expire in March 2015. My understanding is that they are also automatically convertable on a change of ownership, with unexercised warrants expiring.

So, if the deal doesn't close until after March, the warrants expire worthless and the few outstanding Aventine shares will be worth a bucketload. As I understand it, the original exercise price was also quite high on those warrants (but who knows what may have transpired in the 2+ years that they've been exempt from reporting).

Of course with not being able to see any filings since 2012, who knows how many stock options are hanging around out there as well.

http://www.sec.gov/Archives/edgar/data/1285043/000110465912065657/a12-22099_1ex10d4.htm