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nsomniyak

09/25/25 1:13 PM

#2977 RE: jtomm #2976

You are correct.

What DOES transfer into the new common position if you exercise is the COST BASIS from the warrant. In other words, if you pay $6 for a warrant with exercise price $5, and then exercise it, you cost basis is then $11 in the common (and, as you correctly note, the basis date for that common is the date on which you exercised the warrant).