Replies to post #113860 on Niocorp Developments Ltd (NB)

[AlwaysOptimistic]

Hard to say. The offer to convert existing warrants at a lower price could be structured as an elective, not mandatory, allowing those who prefer to convert at the original $10+ in place. Getting money from willing warrants holders now is a win win for both NioCorp and warrant shareholders. NioCorp gets the money sooner to finance drilling and engineering and warrant holders get to convert at a lower price. Th has already stated that he is willing to convert all or a part of his warrants for a lower strike price. 1,000,000 warrants x $1.75 is $1,750,000. Would be nice to know how many warrants shareholders retain other than Th to get a better picture of how much money would be generated.

[monocle]

Apparently it can be done. The key word below is "desperate" imo.

https://knowledge.dilutiontracker.com/en/articles/6814855-what-is-price-protection-on-warrants-and-how-does-it-affect-stock-prices. From the link

Manual adjustment by the company

All warrant exercises prices can be manually reduced by the company, therefore this clause is not explicitly shown on the DT site under the price protection field.



The company may choose to reduce the exercise price below the current stock price in order to entice the holder to exercise, which allows the company to raise some short term funds if they are desperate for cash. In some cases, more warrants are issued as a bonus to further induce the holders to exercise. The market impact is a one time drop on the announcement of the exercise, much like the result of an offering.