Replies to post #24185 on Alto Ingredients Inc (ALTO)

[Waterloo85]

Because that is how warrants exercising occurs. Warrants have a strike price, Peix gets paid the strike price and gives up a share. The person who owned the warrant gets a share for 7.50 and sells the share for whatever it is trading at... In this case $15ish but only the strike goes to PEIX. Warrants are meant as a sweetener not as a benefit to the company or shareholders. If PEIX could have they would have issued debt without issuing Warrants. Existing shareholders get diluted for $7.50...the extra cash is a non-issue in this earning environment. What it important is it is placing selling pressure on the stock and there are now 10% more shares in circulation.