Hycroft Mining Holding Corp (HYMC)

[LouisDesyjr]

No, you misunderstand.

The 17.5% was just used to calculate how many common shares the new company should have, and it was set so the warrants would be 17.5% of that.

IF the warrants are exercised, and exchanged for common shares, then you would pay the exercise price, $8.40, per warrant that is converted into a common share. This is called 'exercising the warrants'. You pay $8.40 per warrant, and get that many common shares.

This only makes sense if the common shares are about $8.40 because if the common shares are trading for less than $8.40 then you would just buy them on the open market.

There is an exception to this, and it is unusual due to the situation surrounding the company. Since only common shareholders are allowed to get a set of financial statements, some people, myself included, would be willing to exercise a warrant even if the common shares were value far below $8.40 per share. That is because it may be the only way at this time to get a share of the common, and then be able to get a copy of the financial statements.

Louis J. Desy Jr.