Replies to post #1426 on Aventine Renewable Energy Holdings (fka AVRW)

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Warrants are similar to calls.

In this case, the shareholders will get warrants at no cost, at a ratio of about 1 warrant : 100 old shares. The expiration date of the warants is 5 years from emergence.

The strike price is $40-41 -- if the shares trade for $100 -- the net value of the warrant is about $59.