Post by Diannedawn
Tuesday, 04/03/18 10:09:01 AM
Re: John Kent post# 586
0
Post # of 741
Indeed....
Quote:
no one exercises warrants without knowing they will bank on it.
The warrant holder probably LAUGHED ALL THE WAY TO THE BANK!
"On March 23, 2018, Aytu BioScience, Inc. (the “Company”) entered into a Warrant Exercise Agreement with a holder (“Holder”) of the Company’s outstanding warrants (the “Warrant”). Pursuant to the Exercise Agreement, the Company agreed to reduce the exercise price of the Holder’s Warrant from $3.60 to one cent less than the closing price on the last trading day prior to the exercise date ($0.41 per share) provided that the Holder exercised the Warrant for cash by March 23, 2018 and the Company also agreed to issue the Holder a new Warrant to purchase 2,000,000 shares of the Company’s common stock at an exercise price of $.54 per share. In accordance with the Exercise Agreement, the Holder exercised the Warrant and the Company received net proceeds of $615,000."
So the warrant holder got to exercise their warrant for 41¢/share
instead of $3.60/share
AND they received a NEW warrant for 2M shares that they can exercise at 54¢/share...
And can you explain the math???
AYTU received $615,000.
divide that by 41¢
= 1,500,000
SO???
It looks like the warrant holder got a NEW warrant for more shares than they had before?
Of course it says "net proceeds"...
so the gross was likely more, reduced by fees, yada, yada, yada...
so the warrant holder probably got a NEW warrant equal to what they had before???
Doesn't that mean they essentially got to purchase shares at 41¢???
and it all transpired on March 23rd...
right before the spike...
Hhmmmm.
ROTFLMAO