MD,
The common stock is included in the uplist. A 'unit' consists of a share of common stock plus a warrant to buy another single share of stock at a fixed price. The warrant price will be set by SGLB on the day of activation of the S1. The warrant's fixed share price will depend on the closing price of a share of SGLB common stock on some date just prior to the activation of the S1. Then the units and the common begin trading on the NASDAQ.
So lets say that the common share price appreciates in value during trading because the market feels that SGLB in undervalued and/or has growth potential. In that event, now, the common share price is higher than the fixed warrant share price that was set previously by SGLB. So if you paid $5.00 for the warrant, and the share embedded in the warrant is already worth $6.00 because that is what the common is trading at, then there is an embedded gain in the warrant. At that point the right to buy a share of SGLB common, under the warrant's rights, should be worth an amount equal to the common share price, plus the immediate embedded gain. Thus it should trade higher in price than the common.
As far as the decision to buy now or wait for the units, I have made my mind up that for CURRENT share holders(and probably for those sitting on the fence, not yet in, but won't have enough cash to buy a meaningful position once the dust starts flying) it is better to own additional shares now. Adding now, in my opinion, should capture the pop in price for the uplist, and reduce the number of shares that might be sold in the offering, thereby reducing dilution. With the S1 offering capped at a maximum dollar amount, if the common share price rises before the offering goes live, then they will sell less shares in getting to max cap. Keep in mind that they do not have to keep selling until they get to the cap either. They can sell less if they want to. I don't think that will happen though. I think we will see large demand for the offering, as I personally feel that SGLB is significantly undervalued.
All the best,
Silversmith
