Stock underlying Warrants - reasons for "S-3 Registrations"
In case you're wondering or unsure: Consider "warrants" as representing an added "incentive" in the course of a public offer (sale) of stock. In effect, an "option" to purchase more stock in the future at a pre-agreed upon price per share. In other words: if the company continues to thrive, the warrants issued along-side a previous stock offering - these warrants will GAIN in value. The very fact that Galena "Registered" some 10.7 MM Shares last week serves to Evidence the fact that those who purchased GALE shares in past "offerings" AND whose purchases of GALE included the option of exercising warrants - these FORTUNATE participants stand to gain EVEN MORE by exercising the "rights" of their Warrants. EVERYBODY WINS!!! The Company entered into certain agreements based, in part on a "viable future & growth" and that Good Fortune has been made to Happen!. Hence, the Company now "registers" the shares of its common stock in support of the exercising of the warrants. This is nothing more than the Company adhering to prior agreements. For anyone to infer or proclaim this recent S-3 registration as being anything less than the manifestation of win-win true success, is total nonsense and completely absurd! Respectfully, Dan.