Armistice would be 'dumping' their "pre-funded warrants" which cost them only .0001 cents per share, so even selling at 2 cents is cleaning up pretty good.
Here's another Chat GPT conversation on an interesting angle regarding warrant strategy:
Quikshft - Lets say that the holder of warrants knew the company was in negotiation to be bought out. Would there be any advantage or reason to redeem the warrants ahead of such an action?
ChatGPT
If the holder of warrants has information that the company is in negotiations to be bought out, they may consider redeeming or exercising their warrants ahead of such an action for several potential reasons:
Price Premium: In the case of a buyout, the acquiring company may offer a premium on the current market price per share. By exercising the warrants before the buyout is announced, the warrant holder could secure shares at a potentially lower price compared to the premium that might be offered during the acquisition.
Locking in Gains: If the warrant holder acquired the warrants at a lower price than the market value, exercising them and obtaining shares at a discount can allow for immediate gains. This can be advantageous, especially if the buyout is expected to drive up the stock price.
Participation in the Acquisition: Exercising the warrants before a buyout enables the holder to participate fully in the acquisition. The holder would receive common shares, which may be converted into cash or shares of the acquiring company based on the terms of the acquisition deal.
Avoiding Dilution: In some cases, companies may issue additional shares as part of the acquisition deal, potentially diluting the ownership stake of existing shareholders. By exercising the warrants ahead of the buyout, the holder may mitigate the dilution impact on their ownership.
It's important to note that trading on non-public information, known as insider trading, is illegal and unethical. If a warrant holder is aware of material non-public information, such as ongoing buyout negotiations, they must comply with securities laws and regulations. Engaging in insider trading can lead to legal consequences, including fines and imprisonment.
If there is material information about the company's status, it's advisable for the warrant holder to consult legal counsel and adhere to regulatory requirements before making any decisions related to the warrants.
Quikshft - OK perhaps my terminology was improper. Shareholders all are anticipating significant news regarding 'corporate developments'. Perhaps those holding the warrants are suspicious a buyout in in the works.
ChatGPT
Understood, and thank you for the clarification. If shareholders, including those holding warrants, are anticipating significant news regarding corporate developments and there's speculation or suspicion of a potential buyout, the dynamics around warrant exercise and trading can be influenced by these expectations. Here are some considerations:
Capitalizing on Anticipation: If there's a widespread belief or suspicion among shareholders that a significant event, such as a buyout, is imminent, warrant holders might choose to exercise their warrants ahead of the news to capitalize on potential gains. This could involve acquiring shares at a lower exercise price before any premium associated with the anticipated event is factored into the market price.
Locking in Value: Warrant holders may consider exercising their warrants to lock in the current value of the shares, especially if they believe that the anticipated news will lead to an increase in the stock price. By exercising warrants early, they can secure shares at a known price before any potential upward movement in the market.
Speculative Trading: Shareholders, including warrant holders, may engage in speculative trading based on rumors or expectations of significant corporate developments. This can lead to increased trading activity, potentially affecting the stock price.
Managing Risk: If warrant holders are suspicious of a buyout, they may also consider exercising their warrants as a way to manage risk. The exercise allows them to convert the warrants into shares and potentially participate in any premium associated with a buyout.
It's important to note that market dynamics and trading activities can be influenced by a variety of factors, including speculation, news, and investor sentiment. If there is material non-public information regarding the company's status, individuals involved should adhere to legal and regulatory requirements to avoid insider trading violations.
Investors, including warrant holders, should carefully consider their actions and potential consequences in light of the available information and regulatory considerations. Consulting with financial professionals or legal counsel may be advisable in such situations.
