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Re: kclark55 post# 91767

Monday, 07/10/2017 5:58:13 PM

Monday, July 10, 2017 5:58:13 PM

Post# of 207107
This is how I decifer this. When an employee buys a common share right now for ten cents, not only do you get that one share but, attached is a warrant exercisable at 15 cents for the next 2 years.
Now break that down.
You have one common share and a warrant.
Let's say in 23 months from the time the employee bought the share the pps is 1.15. Now the common share is worth that as well as the warrant they attached for free. You will have 2.30 worth of stock for the price of .25(.10 initial cost of the common share plus .15 the exercisable value of the attached warrant)
I think the people who say why doesn't the employee buy it now for 4 cents doesn't fully understand how the offer works.
Then there are those that think the company is screwing the employee. I also don't think they understand how the offer works.
Maybe they do understand how it works and they are trying to make a great thing look bad to further their cause.
Maybe I don't understand how this works and my breakdown is wrong.
Thoughts?