![](http://investorshub.advfn.com/images/default_ih_profile2_4848.jpg?cb=0)
Wednesday, July 19, 2017 2:47:09 PM
This clearly wasn't a financing of any kind, if I'm reading this correctly now. Sorry about that. This was an exchange of warrants for non-voting stock. The company received no cash for operations. So - pure dilution - Hispeed was correct. The compensation is to make what I read to be all the holder's shares to be non-voting shares.
The warrants appear to be those issued in April (2,280,000) with an exercise price of $0.83. But more shares were offered than the warrants exchanged for. At present value ($.30) then, we paid about $718,000 in present $ (as well as foregoing almost $1.9 million in potential future payments at full exercise price) for the holder to agree not to vote their shares.
The 8k says that the purpose of this was to provide the company with 'additional flexibility' as to financing.
Warrants don't have voting rights. So what's going on here? Why are someone's warrants worth $7xx,xxx of a strapped company's assets? Unlikely that the warrants would be exercised anytime soon - unless the exercise price wasn't adjusted in any reverse split (very unlikely) - so it isn't a concern about the voting rights associated with the warrants, I'd think.
I have some thoughts on this, but none are particularly persuasive. As I surmised, would assume the holder has considerable shares in addition to these warrants - but who knows? It's not Spangenberg as he has very few warrants on file. Maybe Feinberg - but why would he have bought warrants in April while, at the same time, he was a regular seller of his stock?
Again asking if anyone has thoughts on this. Hispeed is right that this is dilution - but it is dilution with a purpose obviously. What was the concern and how does this position ourselves for additional financing flexibility?
Anyone? Anyone? Bueller?
~ yanqui
Recent MARA News
- Standard Chartered Launches Bitcoin and Ether Trading Desk; Marathon Digital Heats Finnish City • IH Market News • 06/21/2024 06:36:31 PM
- Form DEFA14A - Additional definitive proxy soliciting materials and Rule 14(a)(12) material • Edgar (US Regulatory) • 06/20/2024 01:00:13 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 06/15/2024 01:43:48 AM
- Robinhood Acquires Bitstamp for $200 Million, Binance Reactivates Mastercard Purchases, and More Crypto News • IH Market News • 06/06/2024 07:37:01 PM
- Bitcoin Surpasses $71K Mark as US Bitcoin ETFs See $886 Million Influx, and More in Crypto • IH Market News • 06/05/2024 07:24:57 PM
- Marathon Digital Holdings Announces Bitcoin Production and Mining Operation Updates for May 2024 • GlobeNewswire Inc. • 06/05/2024 12:05:00 PM
- Form 10-K/A - Annual report [Section 13 and 15(d), not S-K Item 405]: [Amend] • Edgar (US Regulatory) • 05/24/2024 08:57:52 PM
- Marathon Digital Holdings Enters into Agreement with the Ministry of Energy and Petroleum of the Republic of Kenya To Enhance Kenya’s Energy Sector • GlobeNewswire Inc. • 05/24/2024 03:23:00 PM
- Form 144 - Report of proposed sale of securities • Edgar (US Regulatory) • 05/15/2024 07:50:51 PM
- Inactive BTC Wallets Transact $62.8 Million, Degen Chain Faces Shutdown, and More Crypto News • IH Market News • 05/13/2024 05:04:14 PM
- Weekly Surge for Render and Toncoin, US Bancorp Expands Bitcoin ETF Investments, and More in Crypto • IH Market News • 05/10/2024 07:32:06 PM
- JFrog and Akamai Drop Over 10% Despite Strong Profits; Sweetgreen, Array, SoundHound Surge, and More in Earnings • IH Market News • 05/10/2024 11:58:39 AM
- Form 8-K - Current report • Edgar (US Regulatory) • 05/09/2024 09:00:09 PM
- Form 10-Q - Quarterly report [Sections 13 or 15(d)] • Edgar (US Regulatory) • 05/09/2024 08:17:02 PM
- Marathon Digital Holdings Reports First Quarter 2024 Results • GlobeNewswire Inc. • 05/09/2024 08:05:00 PM
- U.S. Index Futures Dip, Bank of England Holds Interest Rates at 5.25% • IH Market News • 05/09/2024 11:47:20 AM
- Tellor Tributes Skyrocket 104% in May, Marathon Digital Set to Enter S&P SmallCap 600, and More Crypto News • IH Market News • 05/07/2024 06:48:02 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:05:36 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:05:29 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:05:26 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:05:22 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:05:19 PM
- Form 4 - Statement of changes in beneficial ownership of securities • Edgar (US Regulatory) • 05/06/2024 01:05:16 PM
Last Shot Hydration Drink Announced as Official Sponsor of Red River Athletic Conference • EQLB • Jun 20, 2024 2:38 PM
ATWEC Announces Major Acquisition and Lays Out Strategic Growth Plans • ATWT • Jun 20, 2024 7:09 AM
North Bay Resources Announces Composite Assays of 0.53 and 0.44 Troy Ounces per Ton Gold in Trenches B + C at Fran Gold, British Columbia • NBRI • Jun 18, 2024 9:18 AM
VAYK Assembling New Management Team for $64 Billion Domestic Market • VAYK • Jun 18, 2024 9:00 AM
Fifty 1 Labs, Inc Announces Acquisition of Drago Knives, LLC • CAFI • Jun 18, 2024 8:45 AM
Hydromer Announces Attainment of ISO 13485 Certification • HYDI • Jun 17, 2024 9:22 AM