This is a lengthy read of a Chat bot conversation. I have relied upon the prospectus filed back in 2021 for some stats on the warrants and fed some of the information to Chat GPT. At this time, I conclude it is foolish to be dumping warrants described in the filings as "Pre-Funded" because the exercise price is minuscule and the warrants never expire. Why sell now and risk missing a chance to sell into a run when the "corporate developments" are disclosed? UNLESS you're an insider or have inside information and know the announcements are bogus and you are getting rid of what you can for any amount you can - which is why I asked the question about what Armistice knows about the company TODAY compared to what they knew when they invested.
Quikshft;
PRIVATE PLACEMENT OF SHARES OF COMMON STOCK, WARRANTS AND PRE-FUNDED WARRANTS
On March 2, 2021 (the “Signing Date”), we entered into a securities purchase agreement (the “Purchase Agreement”) with a single institutional
and accredited investor pursuant to which we sold to the investor in a private placement an aggregate of (i) 23,500,000 shares of common stock (the
“Shares”), (ii) pre-funded warrants to purchase up to an aggregate of 51,500,000 shares of common stock (the “Pre-Funded Warrants”) and (iii) warrants to
purchase up to an aggregate of 82,500,000 shares of common stock for gross proceeds to the Company of approximately $6,000,000 (the “Warrants”). The
combined purchase price for one share of common stock and a warrant to purchase one share of common stock is $0.08 and the combined purchase price
for one pre-funded warrant to purchase one share of common stock and a warrant to purchase one share of common stock is 0.0799. The closing for the
sale of the Shares, Pre-Funded Warrants and Warrants occurred on March 5, 2021.
ChatGPT
It appears that the passage you provided is describing a private placement of securities that occurred on March 5, 2021. Here's a breakdown of the key details:
Parties Involved:
The company (referred to as "we" in the passage).
A single institutional and accredited investor.
Securities Issued:
23,500,000 shares of common stock (referred to as "Shares").
Pre-funded warrants allowing the purchase of up to 51,500,000 additional shares of common stock (referred to as "Pre-Funded Warrants").
Warrants allowing the purchase of up to 82,500,000 additional shares of common stock (referred to as "Warrants").
Gross Proceeds:
The company received approximately $6,000,000 in gross proceeds from the sale of these securities.
Purchase Price:
The combined purchase price for one share of common stock and a warrant to purchase one share of common stock is $0.08.
The combined purchase price for one pre-funded warrant to purchase one share of common stock and a warrant to purchase one share of common stock is $0.0799.
Closing Date:
The closing for the sale of the Shares, Pre-Funded Warrants, and Warrants occurred on March 5, 2021.
It's worth noting that private placements are a way for companies to raise capital by selling securities directly to a small number of investors, often institutions or accredited investors, rather than through a public offering on a stock exchange. The terms of the private placement are negotiated between the company and the investors involved.
Quikshft;
The company is the Coretec Group. The current price of a share of stock for the Coretec Group CRTG is less than two cents a share. How do the investors make any money on their warrants in this situation?
ChatGPT;
When the current market price of a company's stock is significantly lower than the exercise price of the warrants, it may pose challenges for investors to make a profit through exercising the warrants. In this case, where the combined purchase price for one share of common stock and a warrant is $0.08, and the current stock price is less than two cents, the warrants are "out of the money."
The exercise price of the warrants (the price at which the investor can buy the underlying stock) is typically higher than the current market price. Investors would exercise the warrants if the market price of the stock rises above the exercise price, allowing them to buy shares at a discount.
Here are a few scenarios that investors may consider:
Waiting for Stock Price Increase: Investors may choose to hold onto their warrants and wait for the market price of the stock to increase. If the stock price rises above the exercise price, they can exercise the warrants and buy shares at a lower cost.
Selling Warrants: Instead of exercising the warrants, investors may choose to sell the warrants in the open market. This allows them to potentially profit from the warrants without buying the underlying stock. However, the price they can get for selling the warrants will depend on market demand.
Expiration Consideration: Warrants have an expiration date. If the stock price does not reach the exercise price before the expiration date, the warrants may expire worthless. Investors need to carefully consider the time remaining until expiration and the likelihood of the stock price reaching the exercise price.
Investors in such situations need to assess the market conditions, the company's performance, and potential future stock price movements to make informed decisions about whether to hold, sell, or exercise their warrants. It's important to note that investing always carries risks, and past performance is not indicative of future results.
Quikshft;
From the prospectus - "The Pre-Funded Warrants have an exercise price of $0.0001 per share, subject to adjustment and no expiration date. The Pre-Funded Warrants are exercisable immediately and may be exercised at any time until all of the Pre-Funded Warrants are exercised in full."
ChatGPT;
Thank you for providing additional details from the prospectus. In the case of the Pre-Funded Warrants for The Coretec Group (CRTG), it appears that the exercise price is $0.0001 per share, and there is no expiration date mentioned. This structure is quite different from typical warrants.
Here's how this specific type of warrant works:
Exercise Price: The exercise price is the price at which the warrant holder can purchase shares. In this case, it's an extremely low $0.0001 per share.
No Expiration Date: Unlike traditional warrants, these Pre-Funded Warrants do not have a specified expiration date. This means that investors can exercise these warrants at any time in the future.
Exercisability: The prospectus indicates that the Pre-Funded Warrants are exercisable immediately, and investors can exercise them at any time until all of the Pre-Funded Warrants are exercised in full.
Given these terms, the investors holding these Pre-Funded Warrants have the flexibility to exercise them at any time, regardless of the current market price. Since the exercise price is significantly lower than the market price, investors can potentially benefit by exercising the warrants and acquiring shares at a very low cost.
It's important for investors to carefully monitor the market conditions, company performance, and their own investment strategies when deciding the optimal time to exercise these warrants. The absence of an expiration date provides flexibility, but investors should still assess the overall investment landscape and make decisions based on their financial goals and market outlook.
Quikshft;
How can it be determined how many of these Pre-Funded Warrants are left to be exercised?
ChatGPT;
Determining how many of the Pre-Funded Warrants are left to be exercised typically requires information from the company, as this data is not always publicly available in real-time. Here are some ways to gather this information:
Company Filings: Companies are usually required to file periodic reports with the Securities and Exchange Commission (SEC). You can check the company's latest filings, such as quarterly or annual reports (e.g., 10-Q or 10-K), which may provide details on the number of outstanding warrants. Look for sections like "Capital Stock" or "Equity."
Press Releases or Announcements: Companies may issue press releases or announcements to inform shareholders about significant events, including updates on the exercise of warrants. Check the company's official website and news sources for any recent announcements.
Contacting Investor Relations: Many companies have investor relations departments that handle inquiries from shareholders and potential investors. You can reach out to the company's investor relations team through the contact information provided on their website or in their filings to inquire about the current status of the Pre-Funded Warrants.
Subscription Agreement or Warrant Agreement: Reviewing the original subscription agreement or warrant agreement that accompanied the private placement might provide information on the terms and conditions, including the total number of Pre-Funded Warrants issued and any restrictions or expiration details.
Proxy Statements: Proxy statements, which companies file with the SEC, may contain information about outstanding warrants. These statements are often prepared for annual meetings and may include details about the company's capital structure.
Keep in mind that real-time information about the exercise status of warrants may not be readily available, and you may need to rely on periodic updates from the company. Additionally, if the company is publicly traded, you can check the latest filings and disclosures on the SEC's EDGAR database. If the company is private, the information may be more challenging to obtain, and direct communication with the company or its representatives may be necessary.
Quikshft;
I discovered in the last quarterly report that a total of 12,500,000 of the prefunded warrants had been exercised.
ChatGPT;
Great! You've made progress in understanding the status of the Pre-Funded Warrants. Knowing that a total of 12,500,000 of the Pre-Funded Warrants have been exercised provides valuable information about the utilization of these warrants.
Now, to determine how many Pre-Funded Warrants are left to be exercised, you can use the following calculation:
Total Pre-Funded Warrants-Exercised Pre-Funded Warrants=Remaining Pre-Funded WarrantsTotal Pre-Funded Warrants-Exercised Pre-Funded Warrants=Remaining Pre-Funded Warrants
In this case:
51,500,000-12,500,000=39,000,00051,500,000-12,500,000=39,000,000
So, based on the information you've provided, there are 39,000,000 Pre-Funded Warrants that have not yet been exercised.
Keep in mind that this calculation assumes that there are no other factors affecting the total number of Pre-Funded Warrants (e.g., additional issuances, adjustments, or cancellations), and it relies on the accuracy of the information disclosed in the quarterly report.
If you have any further questions or if you want to track the ongoing exercise of these warrants, you may want to continue monitoring the company's filings, announcements, or reach out to the investor relations department for the most up-to-date information.
Quikshft;
Coretec stock is lightly traded. Most days less than 100,000 shares are exchanged. Recently there have been some very heavy days where closer to two million shares are traded and the price is generally pushed down. Shareholders desire to know where this volume is coming from, based on the warrant information I've provided do you see that there is a reason for the holder of the Pre-Funded warrants to be dumping them into the market?
ChatGPT;
The increase in trading volume on certain days, coupled with a downward pressure on the stock price, can be indicative of various factors, and it's important to consider multiple possibilities. While the specific motivations behind trading activities can't be definitively determined without more information, let's explore some potential reasons:
Warrant Exercise: The significant increase in trading volume may be related to the exercise of warrants. If holders of the Pre-Funded Warrants are exercising them and selling the acquired shares in the market, it could contribute to the increased trading volume.
Profit-Taking: Investors who acquired shares through the exercise of warrants may choose to sell their shares to lock in profits, especially if the stock price experiences a spike. This profit-taking behavior can lead to increased selling pressure.
Liquidity Needs: Holders of Pre-Funded Warrants may be selling shares in response to immediate liquidity needs or other financial considerations.
Market Sentiment: News, market sentiment, or external factors can influence trading volumes. Events or announcements related to the company, the industry, or the overall market can trigger increased trading activity.
Speculation or Trading Strategies: Traders and investors may be engaging in speculative or short-term trading strategies based on technical analysis, market trends, or other factors unrelated to warrant exercises.
To specifically address the question of whether holders of Pre-Funded Warrants are dumping shares into the market, it's crucial to gather more information on recent warrant exercises and the corresponding stock sales. Reviewing company announcements, SEC filings, or directly contacting the company's investor relations department for insights into recent warrant exercises can help shed light on this matter.
Additionally, analyzing the correlation between warrant exercise dates and the observed increase in trading volume on specific days may provide further clues about the relationship between warrant activities and stock price movements. Always consider consulting with financial professionals or experts who can provide tailored advice based on the specific circumstances of the company and its securities.
Quikshft;
The company recently published this message "ANN ARBOR, Mich., Jan. 08, 2024 (GLOBE NEWSWIRE) -- The Coretec Group (OTCQB: CRTG), developers of silicon anode active materials for lithium-ion batteries, and cyclohexasilane (CHS) for EV, cleantech, and 3D display technology, today announced it will postpone its planned January 11, 2024 shareholder call to a later date, as the Company seeks to finalize and incorporate details of new, promising corporate developments into the presentation.
The Coretec Group leadership appreciates the patience from investors and stakeholders and looks forward to sharing notable developments, including the latest news on the Endurion program, in the near future."
ChatGPT;
The message from The Coretec Group, published on January 8, 2024, indicates that the company has decided to postpone its planned shareholder call scheduled for January 11, 2024. The reason cited for the postponement is to finalize and incorporate details of new corporate developments into the presentation.
Key points from the announcement include:
Postponed Shareholder Call: The company has delayed the scheduled shareholder call to a later date. This could be a strategic decision to ensure that the presentation includes the most up-to-date and relevant information about recent corporate developments.
Incorporating New Developments: The company is actively working to incorporate details of new, promising corporate developments into the presentation. This suggests that there are significant updates or announcements that the company wants to share with its shareholders.
Focus on the Endurion Program: The announcement mentions that the company looks forward to sharing notable developments, including the latest news on the Endurion program. This indicates a specific focus on providing updates related to the Endurion program in the upcoming presentation.
Appreciation for Investor Patience: The company expresses appreciation for the patience of investors and stakeholders, acknowledging that they are eager to share important updates.
Investors and stakeholders should take note of this announcement, as it suggests that the company has important information to convey, potentially impacting investor sentiment. The delay in the shareholder call indicates that the company wants to ensure that investors receive the most comprehensive and up-to-date information about recent corporate developments, including updates on the Endurion program. As such, it could be a critical event for shareholders to watch for future updates on the company's progress and strategic initiatives.
Quikshft;
So, with that information shared is there any possible reason the holder of the Pre-Funded Warrants would be seeking to quickly dispose of them???
ChatGPT;
While it's challenging to definitively determine the motivations behind the trading activities of the holder of the Pre-Funded Warrants without specific information, the postponement of the shareholder call and the intention to incorporate details of new corporate developments into the presentation could be a factor influencing market dynamics.
Here are a few speculative reasons why the holder of the Pre-Funded Warrants might be seeking to quickly dispose of them:
Anticipation of News: The shareholder call postponement and the mention of new corporate developments, especially related to the Endurion program, could create anticipation in the market. The holder may be attempting to sell their shares ahead of potentially market-moving news.
Risk Mitigation: Investors may be concerned about the uncertainty surrounding the upcoming developments. Selling warrants could be a way to reduce exposure and mitigate potential risks associated with the unknown information that will be incorporated into the presentation.
Profit-Taking: If the holder exercised the warrants at a lower price and the stock price experienced a recent increase, they might be looking to capitalize on short-term gains by selling shares.
Liquidity Needs: The holder may have immediate liquidity needs, prompting them to sell the shares acquired through the warrant exercise.
Market Conditions: External factors, such as overall market conditions, sentiment, or trading strategies, could also influence the decision to sell.
It's important to note that these are speculative reasons, and the actual motivations could be influenced by a combination of factors. For a more accurate understanding, additional information about the specific actions of warrant holders, the market context, and the content of the upcoming corporate developments would be needed.
Investors should exercise caution and conduct thorough research or consult with financial professionals to make informed decisions based on their individual circumstances and risk tolerance. Additionally, monitoring future announcements and developments from The Coretec Group may provide further insights into the situation.
