Rocko, I believe you are correct; everyone is focusing on the wrong piece of the announcement in order to cast doubt on the situation. Read the phrase before it:
"Mr. Nathoo and Mr. Kassam are the beneficial owners of 1,814,089 shares of Common Stock held by the Fund."
They now own shares of stock. Not warrants any more; it's a done deal.
To hypothesize, I'm thinking this could be the beginning of a takeover of some sort... and it may be less important for the buyer to accumulate shares up front, and more important for them to get warrants off the table to prevent competition from buying them from Anson or Mr. Nathoo or Mr. Kassam or anyone else. Or maybe these gents have a handshake agreement wit a big fish to turn them over for $6 or $10 a share once they have scooped enough via some network of temporary shareholders they are building. Tons of scenarios could be beginning to play out here, but something has to be happening for someone to be plunking down millions of dollars to clear out warrants when they could get 8 to 10 times as many shares on the open market for the same investment.
I suspect something is up.
Message in reply to:
Based on recent SEC filing on February 14, Anson exercised 1.8M warrants. At what price I don’t know. I took the lowest 2 exercise prices of $3.20 and $4 on the warrant table. Those warrants could also have a higher exercise price. Regardless of what the exercise price is, IT IS MUCH HIGHER THEN THE pps was at the time they exercised. That makes no sense. The only thing I can think of is that it was agreed upon beforehand that when certain. Milestone was met (in this case it would have to be ISO CERTIFICATION) that would trigger warrants being exercised regardless of PPS at the time.
