Replies to post #24387 on Alto Ingredients Inc (ALTO)

[ID Supermoney]

From 10-K on warrants!!

· 5,582,090 shares of common stock reserved for issuance under warrants to purchase common stock outstanding as of that date at a weighted average exercise price of $11.92 per share;

So about $65 million to come yet!!


ID

[Waterloo85]

Great post rule_62.

This equity raise has so many unintended consequences. I am very very surprised they didn't give a better explanation for raising $30m.

[Rule_62]

I subsequently learned that the anti-dilutive clause does not apply when the warrants are exercisable (at or below the share price) and mentioned it in another post. My apologies, I should of posted that as a separate new topic rather than including it in a larger discussion.

Also to be clear, it's not whenever the shares outstanding increases, as the exercising of warrants increases the share count. It's when there's new dilution above and beyond that caused by the exercising of existing warrants, etc. The actual effect is the anti-dilutive clause drops the exercise price of the warrant when new dilution occurs