Replies to post #382 on WONDERFUL WORLD OF WARRANTS

[creede]

Gotcha. I guess could put in a low ball order and see if it fills and go from there. Looks like .51 would do the trick.

Back to my new favorite subject — XELA Warrants!

I presume this means the strike price is $5.75 but you would have to pay $11.50 to get one share of common.

Any idea why it's setup that way? What is the advantage of having the strike price for 1/2 a share?

Why would anyone pay $11.50 to convert a warrant if the commons where less than $11.50?

Seems like they would just buy a common in the open market instead.

Warrants

At December 31, 2019, there were a total of 34,988,302 warrants outstanding. As part of its IPO, Quinpario had issued 35,000,000 units including one share of Common Stock and one warrant of which 34,988,302 have been separated from the original unit and 11,698 warrants remain an unseparated part of the originally issued units which are included in the number of shares of common stock outstanding referred to above. The warrants are traded on the OTC bulletin board as of March 31, 2020.

Each warrant entitles the holder to purchase one-half of one share of Common Stock at a price of $5.75 per half share ($11.50 per whole share). Warrants may be exercised only for a whole number of shares of Common Stock. No fractional shares will be issued upon exercise of the warrants. Each warrant is currently exercisable and will expire July 12, 2022 (five years after the completion of the Novitex Business Combination), or earlier upon redemption.

https://www.otcmarkets.com/filing/html?id=14246287&guid=JEw6Unz3_syPh3h

Also, per that filing we can see there are approximately 35MM warrants. They closed at .017. That's dang near worthless imo. I think they have bottomed out for the most part.

If the commons run to $2 I think the warrants are worth .25 each

If they climb to $4 then .50

If they climb to $8 then Katy bar the door.