Very helpful video, you may just want to double-check some of your calculations. Other than that, the video helped me get the concept better than any other video I've seen so far.
An extra question: If the company "re-prices" all the outstanding common share warrents by -50%, does that mean those future warrants expect an equivalent decline in common share price?
I have a question and had been trying to find the right answer. When they do a secondary offering and at the same time they issue stock warrants to be exercised at the price..do they dilute/issue more shares again when warrants are exercised?
The aggregate fair value of the deal was $218,000. In other words, FL sold the two securities together for a lower price than each would have sold independently. FL was willing to do this to raise low/no interest capital. Like Farhat said, the warrants serve to sweeten the deal and entice more investors.
You make this so clear! Thank you! God bless you!!
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Was struggling with warrants and this 10 minutes video so much sense and very easy to understand. Thank you.
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Cant thank you enough for the clarity you gave me 🙏
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you just made this 10x easier to understand!!
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Very helpful video, you may just want to double-check some of your calculations. Other than that, the video helped me get the concept better than any other video I've seen so far.
An extra question: If the company "re-prices" all the outstanding common share warrents by -50%, does that mean those future warrants expect an equivalent decline in common share price?
I have a question and had been trying to find the right answer. When they do a secondary offering and at the same time they issue stock warrants to be exercised at the price..do they dilute/issue more shares again when warrants are exercised?
I would also like to know the answer to that
How you got warrants 200?
Total value of the deal was 218000 (Bonds+warrant), but while calculating why did you took 215000. please advice.
The aggregate fair value of the deal was $218,000. In other words, FL sold the two securities together for a lower price than each would have sold independently. FL was willing to do this to raise low/no interest capital. Like Farhat said, the warrants serve to sweeten the deal and entice more investors.
When you subtracted the remaining stock warrants your calculation was wrong. 13,807-10,355.75 does not equal 2,897.75