ctso4life is right on the money. Basically, if the stock is .23 and you pay .25 with half a warrant, you are getting a 5 year option to buy CTSO at .3125 for 4 cents. DIRT CHEAP!
At .25 they raised the shares from 34M ot over 40M..shows demand at .25 by institutions..and the warrants are at .3125
eboomer2611 is quite correct. In looking at the Brean Capital IPO list, CTSO shows a lockup period of 180 days. It is not priced yet. By the way, they did another OTCBB in November HRTX (formerly APPA) at 40 cents. The company then did a 1 for 20 reverse split and uplisted. It is now $13.96 per share.
There is a term "fully diluted market cap." Look it up and you will understand what I am referring to. It is important to keep this in mind when considering the valuation placed on a company.
Sentiment: Strong Buy
I think that Brean may be presenting to institutions and when individuals hear the story they go and buy the stock in the open market
You have it a bit backwards. Usually, calling in the preferred forces redemption so the money doesn't have to be paid back. That is why companies issue this kind of stock. A preferred owner will then convert to common shares and the company keeps the cash and stops paying dividends on the preferred.
Have you considered it's being artificially held down? As to what happens after your magical date of March 6th...I'll let you know on March 7th. Long term this company is gold. That's what matters.
current proposed offering is 34 million units, not 51 million shares...the other 17 million shares have to be bought by exercising the warrants at a 25% premium to the offering price...you mislead people by stating incorrect information
Many brokerage houses will not recommend a penny stock. Many mutual funds are restricted by their own policies about what they can buy. However, small institutional investors and venture capital funds can buy whatever they like. Uplisting broadens the universe of potential buyers exponentially.
Since the offering seems to be for institutions only, this is positive for the retail investor. This allows CTSO to raise cash without immediate dumping of the shares sold. Also, since retail investors must buy on the open market there is no reason to hold off buying until the offering comes. The inducement for institutions is that they can buy a significant number of shares without pushing the price up. The warrants are an additional inducement even though the strike price would be about 25% higher than the initial offering price. And the company raises more cash if the pps goes up. Since the warrants will not be trading, their value is only if the pps goes up. This deal is good for everybody...the company, institutions and us.
Sentiment: Strong Buy
Not quite correct... 34 million units with a "proposed" price of .25 per unit. The price can change prior to offering. Each unit comes with half a warrant..that's the potential other 17 million shares which can be purchased by the unit holder for .3125 per share.