Replies to post #191250 on NorthWest Biotherapeutics Inc (NWBO)

[flipper44]

The .50 cent example buyout price is "controversial," but I realize you used it for illustration.

[trocprofit]

good math.

[sentiment_stocks]

Thank you Jerry, for showing the longs on this board how they can exercise their warrants without giving one red cent to the company.

Of course, both examples net the warrant holder the same amount of cash, but when the warrant holder exercises normally, then the company also benefits and it helps to raise funds for them. If one does not want to help the company, a cashless exercise is, as Jerry points out, a better way to do it.

For example, if one held 15 million warrants (that's probably the around the most any one long would hold), they would net $3 million dollars by either means - normal or cashless - if the exercise price were $.30 and the share price were $.50.

Normal
15 million warrants
Give company $.30 x 15 million = $4.5 million (Yay! company has $4.50 million to use for production and other trials!)
Sell 15 million shares @ $.50 for $7.5 million

Net: $3 million

Cashless
15 million warrants
Give the company nothing and exercise cashless (Yay! If you don't want to help the company, guess what?! You haven't!)
[(.50 x .30) x 15 million]/.50 =
[(.20) x 15 million]/.50 =
3 million /.50 = 6 million shares to warrant holder

6 million shares sold for $.50
Net: $3 million

As the warrant holder, you ended up with the same net cash.

Now Jerry's example did state a buyout price of $.50. So I suppose if this were a buyout, the company wouldn't need any cash. But if it weren't, then you may want to consider helping the company by providing them cash, if it can be done without any impact to you.