Sunworks Inc (Warrants) (fka SUNWW)

[maverick1856]

Warrant Info:

3M warrants issued on 3/9/2015

Warrants exercise at a price of $4.15

Warrants expire on 3/9/2020 if not exercised

Ratcheting provisions:

The warrants contain full ratchet anti-dilution protection upon the issuance of any common stock, securities convertible into common stock or certain other issuances at a price below the then-existing exercise price of the warrants, with certain exceptions. The terms of the warrants, including these anti-dilution protections, may make it difficult for us to raise additional capital at prevailing market terms in the future.

We may at any time during the term of this Warrant reduce the then current Exercise Price to any amount and for any period of time deemed appropriate by the Board of Directors of the Company.

Extraordinary Transactions:

In the event of an extraordinary transaction, as described in the warrants and generally including any merger with or into another entity, sale of all or substantially all of our assets, tender offer or exchange offer, or reclassification of our common stock, we or any successor entity will pay at the holder’s option, exercisable at any time concurrently with or within 30 days after the consummation of the extraordinary transaction, an amount of cash equal to the value of the warrant as determined in accordance with the Black Scholes option pricing model and the terms of the warrants.

Black Scholes Calculation:

https://www.mystockoptions.com/black-scholes.cfm

Drop in the following:

current stock price
exercise price - $4.15
time till expiration/exercise - 5 years or however many years remain until 3/2020
risk free rate - current treasury rate
volatility - this is the beta listed in the stock overview section when you pull up SLTD, so if it says 2.1 for beta that would imply a 210% volatility