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Re: SOKAL6 post# 14771

Wednesday, 10/31/2007 7:23:26 PM

Wednesday, October 31, 2007 7:23:26 PM

Post# of 19383
I would think it would make SOME sense, but not maybe perfect sense. I don't try to pretend to know more than I do.

I am making a general statement about the nature of this deal which should have perhaps been obvious at the outset. I am equating the Warrant to Call Option because that is effectively what it is. I know it can be priced.. but that is difficult.

I think what I am saying makes perfect sense, that in order to induce people to buy in, the Warrants are a sweetener or an inducement. That inducement can be priced like an option.

I am guessing at .30-.50 for the warrants.. but that the buyers would still want a good price.

The price being discussed is 2.00. That seems pretty low to me, but not unbelievable. What is actually is remains to be seen.

I can add nothing more in terms of intelligent guesses. Can you?