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The warrants are a different scenario all together. RF sold all shares as quickly as they could at any price, knowing that sareum would keep giving them more shares until the debt was settled. The debt is as near as dammit settled and they have made a decent profit too. So the warrants are the cherry on the cake. They could exercise them when ever they want at what ever price they want, know they will only ever pay 10p for them.
Hi Eazy - although that would be the sensible thing to do, RF have sold immediately so all notions of 'investing' go out the window. They look as if they need cash to help their rto of another company so rather than playing the long game, I was thinking they might just go for a quick profit and exercise their warrants very soon instead of waiting for the sp to hit £1+.
They have to buy them first for which we will see a RNS; and then that is another 100K in the SAR bank - so not all bad news;
And then SAR should get a TAX rebate cash payment mid year (£0.7M) ....
And then in December don't we get 27.5% of 500K shares in Company X (737 related) ... so more potential cash into the SAR cash pot
Best thing for RF to do is wait for the share price to rise further then exercise…
With the SP at this level their warrants(10p) have tripled in value…with the SP back over 100p there’s a lot more money to be made…
There’s now an incentive for them to want the SP much higher than current levels.
There are only 1.069m warrants to RF, now exercisable at 10p. They could all be sold in a day, if RF wants to.
Thanks all for the swift replies.
SOG - re those initial warrants at 147p, under the terms of the agreement (or 'shafting' to use a more appropriate term), aren't they reduced to 10p due to the subsequent WRAP/Subscription?
I suppose it's all fairly moot now anyway and a potential partner would review all aspects of the company & compound before entering into a deal.
Rf most likely forward sell shares as they have done recently. However they may ease release rate to capitalise on gain. Warrants they have 4 years and early tranche was for them to buy at 147p.
Shares will become scarce soon and we are leading up to news time.
Riverfort having a few options is no problem, A company choosing to on license pr partnership will not touch us with a barge pole.
At the moment just be patient for the SP to rerate itself in the 70 to 75 million market cap.
A few weeks is all!
Regards
My guess is warrants don't matter as they are a known quantity. Same as the HNWI warrants, If exercised. I would be good if the board could give a final figure of shares in issue if all warrants and options are exercised.
Morning HBD - The final tranche of shares hit the market on Friday but I am quite sure that the market is able to control the sp whilst some remain - I think this is currently the case. The warrants are not an unusual event so I do not think it would put any prospective partner off and nor would this final tranche as everything is enshrined in contract and will not vary. Therefore it is a known liability.
My own opinion is that the safety data requires publication as any would be suitor has a duty of care towards their own shareholders so would be ill-advised to enter into an agreement before the data is published. Just my own opinion of course and I would like to see a "completion of trial" RNS from Sareum with no adverse events identified subject to confirmation and publication
I guess that this is a worry that them cashing in would drop the SP, how many do they have?
But on a positive note, once they have blown through it, there won't be any further RF restrictions.
RF dumped their shares as soon as they got them (or even before!) so what are the chances that they'll shortly cash in their warrants to make a quick return now that the sp is over 30p?
Would any prospective partner for 1801 want them out of the picture completely or wouldn't it matter to them?
Any thoughts?