Centaurus Diamond Tech. Inc. (fka CTDT)

[bizops12]

there are two ways they can make money on the warrants.

1 - if the stock price is trading above the .75 mark. They pay .75 per share but the stock is trading above that. Let's say it is trading at 1.00. They can sell the shares for an immediate .25 per share profit.

2 - The stock is trading at or very slightly above the .75 mark. If they believe the stock will continue to climb then the .75 is a good price and they gain appreciation. They can still choose to sell immediately but would not make much. Instead they would hold waiting for the appreciation to occur. They won't spend the money unless they really believe the stock will continue to climb.

Either way if they exercise the warrants it should be because the stock is doing well.