Replies to post #4139 on SaviCorp (fka SVMI)

[bly03]

abbam:

Clearly, Cornell makes more money on the warrants if the price goes up, but they will make plenty of money even if the price stays where it is at.

Remember, if the pps never reaches the level of the higher priced warrents, they simply do not choose to excercise them. They do not HAVE to excercize them.

So, if the price were to just stay at 0.7 cents forever (of course, in reality, stock prices do not stay the same forever, but I will use this figure to do the math for the sake of discussion), Cornell's take would be as follows:

30 million "committment" shares X 0.007 = $210,000
1 billion warrents at 0.003 = 1 billion X (0.007-0.003) = $4.0 million

So, if you add up the following, they take in a total of $4.21 million for a profit of $1.24 million on the $2.97 million investment if the price stays at 0.007, and they never excercise the higher priced warrants. Of course, if the price goes up, then their profit increases significantly. Therefore, I am sure that they would prefer that the price goes up, but they don't absolutely need for the price to go up to make a nice profit.