NorthWest Biotherapeutics Inc (NWBO)

[thermo]

I bought warrants when the stock was around $0.20, $0.35, $0.55, $0.80, $0.85, $1.55, and $1.05. My default offer is intrinsic value (stock price – strike price). I’ve paid more and I’ve paid less than intrinsic. If someone is going to exercise and sell, they’re expecting to receive intrinsic after they go through the trouble of the exercising and selling process. So, I can usually close a deal at a price equal to intrinsic.

Why do I prefer a warrant vs stock? Plusses and minuses:

(+) I can only lose the intrinsic value. With a deep in the money option the advantage diminishes but it’s always greater than zero.
(+) The warrant can carry a 5% blocker so I can hold a big piece of the company easily.
(+) If I hold an instrument that no one else does, I can negotiate term modifications with a company that only apply to me…which makes getting to an agreement easier.
(-) A warrant is more illiquid than common stock. So, I must have a fundamental view.