Titan Medical Inc (TMDIF)

[bkk2015]

Element I hope this won't seem like a dumb question, but here goes ... I have appreciated your comments and agree that the warrants look like a good way to play the prospect of a big rise in Titan's share price, but I am confused as to how you calculate the potential gain. If (as you suggest in your example) you held 100,000 "I" warrants and the share price went to $60, wouldn't your profit be much more than the 150K you suggest? While I recognize that you are being conservative in your estimate, I don't see why the profit wouldn't in fact be in the millions, since each warrant should be worth something close to the $37.50 by which the share price exceeds the exercise price. (For example, if the share price was at $60 and the "I" warrant price was at "only" $30, any investor could still buy the warrant, exercise it for another $22.50, then immediately sell the stock for a gain of $7.50 per share.) What am I missing?? Thanks in advance for your thoughts!