Site Network: Home |


I got this email today from a friend of mine:

I am writing to correct a bit of thinking on the warrant comments you had on the blog.

A warrant holder is subject to call at the company's discretion as indicated in your blog as you reference the offering prospectus. However, a warrant holder is NOT necessarily capped on the upside versus those holding the stock. A warrant holder, on the notification by the company to force the exercise, can take several actions:
1. sell the warrant in the open market
2. exercise the warrant, pay the exercise price and take the stock.

The warrant holder is only limited in upside if they choose not to pay the exercise price and sell the warrant before the call is finalized. If the company forces the warrant exercise, the company will receive the cash from the 10.8mm warrants being exercised and will issue 10.8mm common shares. After the call is effected, the warrant will cease to trade. Thus, a holder would not choose to sit and do nothing.

Currently, one could purchase warrants at 0.60-0.65 with an exercise of 2.65, or a total potential cost of 3.25-3.30. Why purchase the warrant vs. the common stock? Answer - either more leverage or less downside risk (in dollar terms for the same number of shares)


Post a Comment

This website does not recommend the purchase or sale of any stocks, options, bonds or any investment of any kind. This website does not provide investment advice. Disclaimer and Notices: Disclaimer: This website may contain "forward-looking" information including statements concerning the company's outlook for the future, as well as other statements of beliefs, future plans and strategies or anticipated events, and similar expressions concerning matters that are not historical facts. The forward-looking information and statements are subject to risks and uncertainties that could cause actual results to differ materially from those expressed in, or implied by, the statements. The information on this website includes forward looking statements, including statements regarding projections of future operations, product applications, development and production, future benefits of contractual arrangements, growth in demand, as well as statements containing words like believe, estimate, expect, anticipate, target, plan, will, could, would, and other similar expressions. These statements are not guarantees of future performance. Actual results could differ materially from the results implied or expressed in the forward looking statement. Additional information concerning factors that could cause actual results to differ materially from those in the forward looking statements are included in MVIS most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission under the heading 'Risk factors related to the company's business,' and our other reports filed with the Comission from time to time. Except as expressly required by Federal securities laws, MVIS Blog undertakes no obligation to publicly update or revise any forward looking statements, whether as a result of new information, future events, changes in circumstances, or other reasons. Legal Notice: Although considerable care has been taken in preparing and maintaining the information and material contained on this website, MVIS Blog makes no representation nor gives any warranty as to the currency, completeness, accuracy or correctness of any of the elements contained herein. Facts and information contained in the website are believed to be accurate at the time of posting. However, information may be superseded by subsequent disclosure, and changes may be made at any time without prior notice. MVIS Blog shall not be responsible for, or liable in respect of, any damage, direct or indirect, or of any nature whatsoever, resulting from the use of the information contained herein. While the information contained herein has been obtained from sources believed to be reliable, its accuracy and completeness cannot be guaranteed. MVIS Blog has not independently verified the facts, assumptions, and estimates contained on this website. Accordingly, no representation or warranty, express or implied, is made as to, and no reliance should be placed on the fairness, accuracy, or completeness of the information and opinions contained on this website. Consequently, MVIS Blog assumes no liability for the accompanying information, which is being provided to you solely for evaluation and general information. This website does not contain inside information, proprietary or confidential information learned or disclosed as part of employment relationships or under nondisclosure agreements or otherwise.