Marek,is it reasonable to expect a 10%ish bounce tomorrow? Share count,eps,etc is currently figured as if the warrants were exercized(carried on the books).Is that correct?So share count should drop by 11 mil tomorrow,assuming the warrents are not exercized.Thanks
No, do not expect 10% bounce tomorrow.
Everything is already reflected in the current PPS. Everybody knew the numbers and conversion price so there is no unexpected news effect.
In the books (10Q) they were already reporting diluted weighted average common stock and common stock equivalents without those warrants (just including preferred shares remaining) so the reports wil stay the same.
The only effects are:
- in this Q there will be last $0.7m warrant valuation (profit into P&L) erasing any previous charges carried on the balance sheet
- your shares hold will be worth app. 4% more than before thanks to antidilution effect - you have to calculate this based on book valued that was not diluted into 114m shares.
- EPS will not be diluted by 10-11% - that is awsome
- future dividend sharecount will be lower so any possible dividend will be higher yiedling
marek, your statement proves how superficial your contribution is .... how do you know conversion final outcome ? in addition, should it be zero as you assume, I think it would prove warrant holders (and shareholders) are hopeless with regard to LPH's upside.