So as quickly as it crashes it comes back. What gives? Went to lunch and pondered adding to my position below $2, but looks like that ship has sailed. Can anyone shed some more light on these warrants. Seems to be a little confusing.
letter dated 11/16/12 from Keith Murphy to holders of the original ONVO warrants is an offer to amend and excercise such warrants. Holders have until 12/17/112 to accept the offer. The excercise price via the offer decreases from $1.00 to $0.80 per warrant. Each wt converts to one share common. There is a 20 day lock-up period following excercise. Prior to this offer/amendment, the warrants were exercisable at $1.00 for another 4.5 years.
ONVO could potentially raiise $12 million if all warrant holders go for the offer. This is good news since it will avert a secondary and dilutive offering for at least another year. It also helps position the company for getting fully listed on the NASDAQ since it will significantly reduce or elimiinate the reportable warrant related liability.
I own a large amount of ONVO original warrants and will be excercising next month to take advantage of the offer. Those who don't participate will continue to hold warrants good for 4.5 years, but can be redeemed by the company if the stock trades over $2.50 for for 20 consecutive trading days.