Replies to post #7738 on Alkaline Water Comp Inc (WTER)

[236T568]

you DO UNDERSTAND that out of the money warrants have value, significant value in this case

value that has been "given" away by WTER in the lease

see Black-Scholes valuation model for details

Second the warrants were issued "out of the money"

[236T568]

actually, no

it is 41.6%:

http://investorshub.advfn.com/boards/read_msg.aspx?message_id=108803848

it's about 8% not 41% , this is a lease rate not an interest rate. It is used in capital leases and must be converted to an interest rate which in this case is a little over 8% money. Second the warrants were issued "out of the money" and therefore the lessor must believe in the company and

Finally, the exercise of the warrants will result in a cash infusion to the company offsetting much of the lease cost.