Sigma Labs Inc (SASI)

[TedJ]

Warrants - As I posted on 3/1/20:

The reality is that one warrant (CUSIP 826598112) could/can be exercised for $4 and the warrant holder would receive 1 common share of the old CUSIP 826598302 shares.

When they reverse split the old shares 1 for 10 (1 new CUSIP 826598500 share for 10 of the old CUSIP 826598302 shares), then the "value" of the 1 old shares became 0.1 of a new share.

So to get one new share, 10 warrants would have to be exercised at the old exercise price of $4 each.

This effectively increases the exercise price to $40 for one new share and decreases the number of new shares that could be issued to 141,000.

This would explain why the warrant price did not drop from 32 cents to 3.2 cents during Friday's trading session.

The company did not announce and implement a 1 for 10 split of the warrants with a new warrant CUSIP along with the common share split. They could in the future, but to me it would just be a unnecessary effort and expense.

All that would need to happen in the future is that the company's transfer agent would simply issue one share of common stock for every ten warrants that get exercised. You can't exercise the warrants without going through the transfer agent, that is one of their jobs.

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