InvestorsHub Logo

BadMutha

10/29/07 9:11 PM

#14679 RE: vivasoft #14678

There is a ristriction on the warrants.

panzer6

10/29/07 10:29 PM

#14685 RE: vivasoft #14678

One could purchase X, sell 1/4X, and be left with the same number of shares (3/4x + 1/4warrants) with a 25% return of capital

The warrants are not free. Well they are but you have to pay in order to turn them into shares. At least in this case.

They are like a rain check in a supermarket. And they have their own price set on them which is different from the shares.I dont know why.

the big guy

10/29/07 11:49 PM

#14689 RE: vivasoft #14678

I think the inclusion of a warrant is intended as a "sweetener". The buyer would keep it for future use. It enable him to purchase shares at a set price. If the stock goes up, the buyer can exercise them and make more money. But the stock has to go up first.