Niocorp Developments Ltd (NB)

[Middleborder]

Trofee, Monocle;


For visitors or new investors here who may not know what a warrant is (Neither of you and few on this board!)

https://www.thebalance.com/what-are-stock-warrants-3140517

"A stock warrant is simply the right to purchase shares of a stock at a certain price. Warrants are good for a fixed period of time, but they're worthless once they expire. You're not locked in when you buy a warrant. You're always free to decide that you don't want to buy the underlying security.

A put warrant sets a certain amount of equity that can be sold back to the company at a given price. A call warrant guarantees your right to purchase a set number of shares at a certain price. "

and:

https://www.investopedia.com/ask/answers/how-to-exercise-stock-warrants/

"A warrant holder may choose to exercise the warrant if the current stock price is above the strike price of the warrant. Alternatively, the warrant holder could sell their warrants, as warrants can be traded similar to options.

If the current stock price is below the strike price, it makes little sense to exercise the option, since it is cheaper to buy the stock on the stock market. For example, if the strike of the warrant is $40, and the stock is currently trading at $30, it is not prudent to exercise the right to buy the stock at $40 when it can be purchased at $30.

On the other hand, if the stock is trading at $50, and the strike of the warrant is $40, it is beneficial to exercise the warrant. That said, just because the current stock price is above the strike price doesn't mean the warrant has to be exercised. If there is still lots of time until the warrant expires, holding onto the warrants may prove even more profitable.

For example, if over the next year the stock rises to $80, the warrant has become more valuable. The stock is trading at $80 and the warrant holder has the right to buy at $40 (and could immediately sell those shares for $80).....

Exercising warrants is dilutive to existing shareholders. When a warrant is exercised the company issues new shares, increasing the total number of shares outstanding."


While yes, we don't like dilution we hope that we are all rewarded with higher NioCorp prices by those expected exercise dates! (And NioCorp will recieve additional operating capitol produced by the sale of those warrents!)

(Thanks Monocle for posting info on the warrants!)

Viel Erfolg! Good Luck! Bon Chance!