Cost of warrants
When I bought HYCTW, I was looking to get anything that would allow me to get the common shares, HYCT, so I could get a copy of the financial statements. The idea is that if I could get that then I could see if the common shares, HYCT, had any value of not.
In the end I ended up paying about $26 for 101 warrants, so my cost is arounf $0.25 per warrant; but I was more concerned with being able to by some number of warrants than buying at a good or rational price.
As I mentioned before, the fact that the warrants trade for a higher price than the common seems to indicate to me that either the warrants should trade much lower or the common shares, with the NewCo capital structure, may have been made almost worthless due to all kinds of other debt in line ahead of the HYCT shares. I suspect that even the DIP financing or new 2nd lien notes may never be able to get their cash out of HYCT unless gold price really spike, like to $3,000 or $4,000 per oz.
Louis J. Desy Jr.
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