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Re: Dragon Lady post# 6603

Saturday, 03/29/2014 2:07:16 AM

Saturday, March 29, 2014 2:07:16 AM

Post# of 106837
Stand corrected on re-read:- the warrants are indicated as "cash"- so when/if the holder exercises them, then that 1.6 cents per share to 3 cents per share, that portion does go to BHRT who in turn would issue a share to Asher or whoever, who can then turn around and sell those shares. It of course is more dilution for each new share issued. So, stand corrected there after noting the "cash" based warrant terminology.

So, 50 million, and the table said 1.6 is the "Average" price- if all were exercised then 50,000 million more shares would be outstanding and BHRT would get 50 million x 1.6 cents = $800,000 more dollars- that's ONLY if the warrant holder chooses to exercise them and buy the shares of course and nothing guarantees all or part ever get exercised. So, it appears those warrants were still outstanding as of the 10-K issue and not exercised yet as of close of 10-K period. So yes, there could be money generated if the holder exercised the option and took a share of stock in turn, again, increasing the outstanding shares.

That would be it at that point, the warrant then vanishes, more shares are outstanding and the company received the 1.6 cents to 3 cents or so, or whatever per share- regardless of where the price was (unless of course it's less than 1.6 or 2 or 3 cents or whatever the warrant price is- then the warrant is worthless).

Still, IMO I don't see any connection to a "bridge loan" here or anything else. This is just a continuance of typical "financing" and warrant issuing (say to Cassel for example and Asher) that BHRT has been doing for a long, long time- many of the warrants expiring worthless or near expiring worthless now.

Will double check the math, and re-check that warrant table in the 10-K, but it appears they were not exercised yet. Check the math yourself- I could be wrong, but that's after giving it a 2nd look and seeing the "cash" term in there- so I don't think BHRT has received anything for those yet.

If you look at that warrant summary table, 10-K page 57, there are about 100 MILLION warrants out, however the average exercise price is like .13 to .22 cents. So a large portion of those are worthless as of now so they would never be exercised of course until the stock got well above those prices. The recent, 2013 50 million being at around 1.6 to 3 cents appear intriguing though- as those might be "in the money" enough to entice someone (an Asher) to pay up some cash, buy the stock in order to turn around and flip it, IMO. Will have to see- that could be a source of some funds to keep month to month going- but dilutive again as shares would go up by an equal amount to each one exercised. We'll see- interesting. Again- don't see any connection though to "bridge loans" or anything else though, IMO.

Of course, the warrant holder has no obligation to ever use/exercise the warrant if they don't want to or choose to- in which case no money comes in from them- which has happened quite a bit looking at that past warrant table. That's the re-do correction math IMO, my take.