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Re: harry crumb post# 74416

Wednesday, 08/12/2015 2:23:17 PM

Wednesday, August 12, 2015 2:23:17 PM

Post# of 87250
Hey guys,
This is my understanding. Correct me if I am wrong.
A lender is issued 100 million warrants.
Which is an ABILITY to buy stock at 0.45/share.
Once a warrant is exercised (bought) it is no longer
a warrant but now an Outstanding share.
Lender has specific amount of time to buy.
Purchase price goes to company instead of "The Market"
So as a lender I'm not buying now because I could
get shares from the market at 0.32
So I'll wait till shares are valued over 0.45 to buy
Which is why Outstanding shares have not increased
So company wants to get share price over 0.45
because the warrants will begin to be purchased
and income from those purchased will start
to flow in. This helps company bottom line but
makes it difficult for share price to get very much
over 0.45 untill all warrants are exercised.
And even then prise will rise slower due to dilution
preventing Market cap of stock from being over rated.
Please correct any incorrect understanding.
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