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TenKay

02/09/22 5:11 PM

#107685 RE: Cinnyricinclus #107684

“If you read that paragraph by Zacks in the link which you posted, they are talking about intrinsic value in the first five sentences.

Then let’s discuss what they say about “intrinsic value” in the first 5 sentences…which is what I have been talking about:

Subtract the exercise price from the market price to find the intrinsic value of the warrant. Suppose the market price is $50 per share and the exercise price is $40. This gives you an intrinsic value of $10 per share. Divide the intrinsic value by the conversion ratio to find the value of one warrant. In this example, if the conversion ratio equals five, you have $10 divided by five. One warrant is thus worth $2. If the market price is less than the exercise price, the warrants have no value because you could buy the shares on the market for less. Warrants acquire value only if the market price rises above the exercise price.


They are essentially saying that the “intrinsic value” is the market price minus the strike price.

So for HMBL warrants if the pps is $0.17 and the warrant strike price is $0.20…what is the intrinsic value?

And there is nothing badly worded about it.

Once again I am talking about intrinsic or ACTUAL value….not potential future value, not perception of value…

This is getting a little ridiculous…