Longwei Petroleum (fka LPIH)

[rru2s]

“Warrant expiration dates can be extended with board approval.”

http://www.ehow.com/about_4692028_stock-options-warrants.html#ixzz28cregND3

“The Valuation Effects of Warrant Extension”

http://www.jstor.org/discover/10.2307/2328891?uid=3739864&uid=2129&uid=2&uid=70&uid=4&uid=3739256&sid=21101244984951

“The stocks of firms making the extension announcements experience positive abnormal returns on average. … The market perceives the decision to extend the warrants’ expiration date as a favorable indication for the stock price before the subsequent expiration.”

http://www.personal.anderson.ucla.edu/francis.longstaff/pricingoptions.pdf

“Pricing Options with Extendable Maturities: Analysis and Applications”

“If the warrants are allowed to expire out-of-the-money, the firm faces the substantial transaction costs associated with an equity offering. However, if the warrants are extended and subsequently expire in-the-money, then the new shares can be issued at a price close to the market price with little or no marginal cost. … While extending the maturities of warrants does not guarantee that the warrants will subsequently be exercised, it does provide the warrantholder a second chance to do so.”