Niocorp Developments Ltd (NB)

[tedro84]

I brought the warrants up months ago and I simply can’t believe the recent infatuation with them.

Put yourself in the shoes of “The Company”. The Company used warrants to buy cash. The company could have used grains of salt to buy cash or grains of gold. As a shareholder, would you prefer they buy the necessary cash with salt or gold?

If the share price doesn’t hit the warrant strike price, they essentially used the salt grains (in part) to buy cash. This obviously doesn’t mean the company wants to see the stock price stay low perpetually, but when we are talking a matter of months and over 5% equity the answer should be obvious to all. Warrant holders can always benefit further to the warrants by buying on the open market and getting shares into “stronger hands” while simultaneously driving up the share price.