NorthWest Biotherapeutics Inc (NWBO)

[LearningEveryTrade]

Warrants - possible reason why NOW...

From Seraf

" Q: When is the ‘right’ time to exercise your warrants?

Generally speaking the best strategy for exercising warrants is to wait until you are sure the company is totally out of the woods (and the warrants will therefore definitely be worth something) and then, once you have made that determination, exercise them as soon as possible to start the capital gains clock running so it hopefully has at least a year to run before any acquisition occurs. That way they are treated as long term capital gains with a preferential rate, as opposed to short term capital gains, which are taxed at the same rate as ordinary income. Put another way, you want to exercise them as soon as you reach the point that you are sure you are going to exercise them. Bit of a tautology, and most people just set them aside until the last possible minute and then exercise them as late as possible. Can be a fine strategy IF you are able to hold the stock for a year. If the company gets bought after you exercise, you can be looking at higher taxes that were avoidable if you had known for the last several years you were going to exercise them."

It's feels like a little of both, cap gains issue and "out of the woods".
I mean, you would want warrants converted to stock for easy selling on TLD right??
Thank you to all those who have religiously bashed on the warrants. This action made me look into it more and I am Longer than ever based on a better understanding of the warrants and the possible timing. My rough estimate is 1/3 of warrants exercised ?? Anyone have a closer more accurate guess??