Replies to post #224114 on Biotech Values

[DewDiligence]

It seems to me that the warrant holders that were not offered the 1:1 swap simply were not part of whatever the other warrant holders might have agreed to provide in return, pursuant to your scenario.

That's what I originally thought; however, on reconsideration I find it highly unlikely that management offered the swap deal to some warrant holders but not others.

Because of the “Most Favored Nation” clause in the Sep 2018 financing, the warrants from that financing were destined to become at-the-money warrants upon executing the (presumed) upcoming financing, so the cash ADXS forfeited from the cashless swapping of the warrants doesn’t amount to much.

[DewDiligence]

…your scenario doesn’t address what ADXS is getting in return for swapping the warrants out.

You’re absolutely correct on this point. Although the cashless swap forfeits only a small amount (#msg-147602849), it’s senseless from a strictly mathematical standpoint. I infer that the parties are not behaving 100% rationally with respect to the upcoming financing.