Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

1.75? I think you mean 17.5%

As part of the reorg plan, the existing common shares were to be issued warrants convertible into 17.5% of the outstanding common shares with a strike price calculated. From what people can tel, it looks like the strike price should be $8.40.

The problem with this, is that it looks like if the warrants were to be exercised that the outstanding number of shares would be somewhere around 100 million shares and a strike price of $8.40 would give it a value of over $800 million. While my numbers are only an estimate, it does show that the company has to have a somewhat high market cap in order for the warrants to have any value.

Note this does not take into account the debt the reformed company has, so the whole company would have to be worth that much more in order for the warrants to have any value.

The big hope I see for the warrants is if there was finally a large rise in the price of gold with all of the money that the Fed has been pumping into the financial systems.


Louis J. Desy Jr.