anyfurtherTricor thought?16 Mar 2016 15:35
I found this posted on that site today.
NOVA offers Tricor warrants for sale at 4.9p each
LINK
Warrants over 34,000,000 ordinary shares in the share capital of Tricor Plc were acquired on 27 February 2014 for a total consideration of £2,000,000. Following the acquisition of the Warrants, Nova will hold a total of 43,000,000 warrants in Tricor, all of which are exercisable at 0.5p by 31 December 2017.
10. AVAILABLE-FOR-SALE FINANCIAL ASSET
Share price at year end 7.6p
Exercise price 0.5p
Expected warrant life in years 3
Risk free interest rate 1%
Expected volatility 185%
Expected dividend yield 0%
Fair value of option 4.9p - 31 December 2014
This means the warrants can be exercised at 0.50p and they will sell them for 4.9p at a fair value price as at 31 December 2014
But as you can see the share price is now half of the warrants exercise price, which also means they will not be able to sell them for 4.9p let alone 0.50p
So 43,000,000 warrants times 0.50p = 21,500,000p divided by 100 = £215,000 which is the value at the exercisable price of 0.50p for 43,000,000 shares
not including costs.
They paid
Closing cost for 2014 £2,606,787
2013 £700,299
They lost
Closing unrealised (loss) 2014 £2,397,748
2013 £93,512
Closing valuation 2014 £209,039
2013 £606,787
This shows NOVA as warrant holders of TRICor lost money on the warrants and why they wont exercise them and pay more to buy the shares.