Deep Blue Marine (DPBE)

[jrf30]

alpha,

Warrants won't work because of the price. Warrants are like options in many ways. Rights to buy the stock at a set price in the future. Normally a higher price than today, but given or sold at a lesser price than today. For (A simple) example:

A stock is trading at $4.58 per share. The management gives out warrants to buy the stock at $6 per share, over a period of 18 months. Those warrants (if they are not given out as part of a package, or for in-kind services, as discussed in the next paragraph) might be sold for $0.30 per unit. Why would someone buy them? Because they don't have to put in $4.58 per share, but only put in $0.30 per share. And if the stock goes up to $9, they don't get a double, like someone owning it at $4.58 per share would, but they would exercise their warrant and buy it at $6 and still have a nice gain. If it goes down to $2.89, they don't lose all that, but just lose $0.30 per share. The warrants expire worthless.

However, - most warrants are NOT sold like that. That is more of an option, even though warrants CAN be sold like that, and that was the question originally asked. Most warrants are given out in a package. Using the same stock above, the company might want to sell a 504 offering, and offer for an accredited investor to buy 100,000 shares of the stock, restricted for a little while, at $4.35 per share (Normally a little discount to the market) and attach to that offering the rights to buy (through warrants) more stock at $6 per share for the same 18 months. THAT is how MOST warrants are issued. They normally are not just sold alone. they also can be given out to management or key employees as bonuses. that happens often too. Warrants to buy at $6 per share for 18 months so that the employees will benefit if the stock goes up.

Now - as to DPBE or ORRV selling warrants. SInce the stock price is at $0.0005, they would not be able to sell warrants (like suggested elsewhere) to purchase at 5 cents per share for a penny each. After all, why would i buy a WARRANT at 0.01 when i can buy the SHARES at .0005. No, the warrants have to be LOWER than the stock, or no one would buy the warrants. Make sense? No one would purchase a "right to buy" a stock for more than the cost to ACTUALLY buy. So, using the price today, warrants woud have to be something silly like a right to buy over the next 18 months at $0.01 or $0.02, and would COST $0.00004 or so per warrant. Just too many zeros to make it worth selling. It would bring in too little money per share, and would "reserve" the rest of the authorized shares that are not outstanding for a pittance of money.

So that's why, although some want warrants to be sold, they could not be. The price of the stock is too low. That's the only reason.

Hopefully that helps some.