Shail...."the warrants still offer you an advantage to the extent of their worth." Exactly! The warrants are the sweetener to this deal. If it produces enough of an enticement, management will probably sell $12-13.8M of newly created stock.
None of us know how the stock will trade once it ascends to the Nasdaq. Your gut tells you that the stock might trade lower than the strike price for the S-1. I don't disagree, particularly if many investors try to reduce risk from their S-1 purchases by selling into the open market and sit on their warrants. On the other hand now that the stock will be traded on Nasdaq and will start above $5, institutional investing could easily begin establishing positions. This could augment after the 10K is filed in mid-December presuming the numbers come in as good as we hope. Also, if the short interest finds that it has lost control in manipulating the pps downwards, we might see capitulation from that quarter and a resultant mini-short squeeze.
Bottom line, a more accurate FMV should be established for APDN by year's end. This is something that I have tried to formulate on my own with advice from this board. Now institutional wisdom will have a say in this. We will see if $6 (which we all know is equivalent to 10 cents pre-split) is underpriced as many on this board have griped about incessantly in the past. If the pps descends to new depths over the next couple of months fulfilling predictions by some on the Yahoo Board, I think all of us here will reappraise our investing acumen. FWIW, I was a buyer at 10c and bought a bit more when APDND dropped down to $5.
I've decided to participate in the S-1. It's a hedge bet for me. GLTY & GLTA.
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