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Re: exwannabe post# 191218

Tuesday, 09/25/2018 1:02:27 PM

Tuesday, September 25, 2018 1:02:27 PM

Post# of 718776
They are cashback to the buyer, not the seller. The warrants have to be executed at a cost to the holder. That money goes directly to the buyer. If a buyer offers $2 billion for a company with 900 million shares and there are an additional 100 million warrants executable at .50, the buyer gets 50 million back in the form of cash after putting up $2 billion. All shareholders subsequently receive $2.

It’s an indirect form of cost saving to the buyer.
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