Replies to post #32339 on Lexaria Bioscience Corp (LEXX)

[PotsandPans420]

They expire in 5 year you have the right to exercise the warrant to purchase LEXX at $6.58. Warrants have done very well since they started trading at $2 I would probably go with the stock here but as the stock goes up it’s something to watch. Sometimes warrants will be better deal. Right now Is rather buy the stock.

Warrant exercise price 6.58 +$2 warrant 8.58 break even.

[TonyX]

Warrants and dilution
Excuse the rounding:
The after the split, the company raised an additional 1.8mm shares and 1.8mm warrants...tha's 37.5% dilution immediately and another 37.5% of warrant dilution in the future.

There are still 1.8mm warrants now. So there's a massive overhang on the stock that will prevent it from reaching that $8 a share again (post-split, pre dilution). This happens all the time, a stock won't get bought up to the warrant price unless it's going to blow past it by a lot because the second those are triggered, the shares are worth so much less.

THis dilution was horrible for shareholders. We'll see how they actually start to spend this new money. If their salaries go up and R&D doesn't increase ten-fold, then we'll know for sure these are scammers.