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So...at roughly $12.95 per share...
The exercise of warrants will RAISE $9.3 Million for the company and result in a roughly non event for tax purposes.
So - if they are exercised - then the Company basically just raised $9 million in cash...
Thats the way I interpret it. HOWEVER, I am not sure how you get $9.3M. Wouldn't it be $6.3M... ($12.95 - $7.75) * 1.2M = $6.3M.
They have 1.2 Million Shares that will be SOLD to an investor for $7.75 per share.
1.2 Million x $7.75 = $9.3 Million.
That is $9.3 Million that goes TO the Company.
THE INVESTOR will pocket the difference between $7.75 and $12.95. That is the INVESTORS Profit in the deal.
1.2 Million x $5.20 = $6.3 Million