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Retail Opportunity Investments Corp. Message Board

  • twofarstar twofarstar Sep 16, 2011 10:21 AM Flag

    BEST warrant strategy

    The warrants are a great way to raise capital but the catch 22 is that the stock price won't go into the territory needed for this to happen as they act as a ceiling on the price. Management is apparently trying to make something fairly simple very complicated. Simply offer a conversion of the warrants into common with a few kickers. Warrant holders would provide the warrants and some cash for a common shares with a slight premium to encourage maximum conversion. This would take 80-90% off the market and dilute the common only modestly. The warrants are generally held in a few hands as evidenced by the Board members 9 million of them so this would be successfully subscribed to.
    In the meantime the company seems to be selling well below NAV with growing dividend stream. Management competence will come into question if they can't solve this by year-end.

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