SoxFan,
I have been looking through STWA's filings, and the precise situation in relation to exercisable warrants is as follows.
The last warrants that were exercised were issued on July 31st 2011 and expired on July 31st 2013. They provided the option to purchase 1,951,132 shares at 30 cents each, resulting in a total potential income to STWA of $585,339. I have not been able to establish precisely how many of these options were purchased, but whatever the amount, this money is already in the bank.
There are five other sets of warrants that are still due to be exercised.
On 15th October 2011, 682,880 optional shares were issued at 30 cents each, resulting in a total potential income to STWA of $204,864. These will expire on 15th October 2013.
On 13th December 2011, 6,066,016 optional shares were issued at 30 cents each, resulting in a total potential income to STWA of $1,819,804. These will expire on 13th December 2013.
One 13th January 15th 2012, 4,082,936 optional shares were issued at 30 cents each, resulting in a total potential income to STWA of $1,224,880. These will expire on January 15th 2014.
On 13th February 3rd 2012, 1,806,200 optional shares were issued at 30 cents each, resulting in a total potential income to STWA of $541,860. These will expire on February 3rd 2014.
On 23rd July 2012, 1,422,300 optional shares were issued at 40 cents each, resulting in a total potential income to STWA of $568,920. These will expire on 23rd July 2015.
So the total potential income STWA can anticipate from exercisable warrants between now and July 2015 is $4,360,328.
The first four of these sets of options (at 30 cents each) were issued when the market price per share ranged between 20 and 40 cents. The last options (at 40 cents apiece) were issued when the pps was in the region of 50 cents.
These options were issued, every two or three months, in conjunction with the purchase of shares or convertible notes. The money from these purchases was clearly necessary while the company was still in R and D and no income from sales was anticipated in the immediate future.
It is now over a year since the last private offer. So my question to you, is why have they not sold any shares or convertible notes in the last 12 months, given that the share price has multiplied in the interim? If they do not anticipate income from sales any time soon, surely this would be the logical thing to do.
If, as you and Mr Sano regularly imply, STWA management's primary raison d'etre is to live off money raised from private placements, why not sell more stock? With the market displaying greater confidence in the company, STWA could sell shares for two or three times the figure they have sold them for in the past, as well as having warrants at a comparable price to be exercised in the future. Why would they not do this?
There is only one explanation that makes sense. They clearly believe that, together with the potential $4.36 million expected from outstanding warrants, they have enough money in the kitty to cover their operating expenses until the company is earning an income from sales; which means there is no need to further dilute the stock. A rather responsible standpoint one might think.
If STWA management had even a modicum of concern that a significant income stream would not be forthcoming in the foreseeable future, they would surely have conducted another private placement, if only as an insurance policy. And yet nothing for over a year.
With the recent announcement of the TransCanada leasing agreement, as well as other negotiations that are reportedly in the pipeline (both literally and metaphorically!) it is not hard to see where this confidence is coming from.
If I were you I would drop this line of argument. This is not a horse that will run.
AI
