RE: would you rather see21 Feb 2018 13:20
It is much better for sure having LTH and identifiable ones. Some like yourself very involved from board level to grass roots investors and a breath of fresh air, I invested more in this company based on the share structure/commitment of those that have more to invest.
However, you can never sell me on the virtues of a warrant as a poor meagre investor. And I mean warrant to any form of share allocation party.
I am an investor just like the new Husain Salman Ghulam Al-Lawati, I have been here 4 years (feeble SIPP) so I am a long term investor, longer than him. I can guarantee with my current investment I have more 'risk to % net worth' than he does. With an entry that size he cannot buy in the open market, so to be given shares at a flat rate to get an entry into the same long term risk in share price that I have taken, is a benefit in itself, as it would have cost a considerable lot more to buy that kind of position in the market. So to be given the ability to print money down the line in the form of 16million warrants is frankly rude.
Because thats what warrants are, don't tell me they are a further investment to help a struggling company for cash, warrant holders only convert if its in 'their' best interests.
If the price is below 6p warrant holders are not going to convert, if the price is 6p warrant holders might convert if they saw further potential and its either a fund raising or they get another large entry at a fixed price themselves, but likely to take a fund raise and just get more warrants.
However if the price hits 60p, I'm sure you would have to have your arm twisted to put your hand in your pocket for more 6p shares..... ;) In fact you don't even need to put your hand in your pocket, you only have to sell a handfull of 60p shares to get 10 times more warrants that are instantly worth 10 times more, so sell 1m shares at 60p and instantly receive 10m shares now worth 60p. Thats a fine bit of business on top of the 10x rise in the investment.
You can't knock their being a spot of jealousy involved here, same investment, at least same risk to personal wealth ratio if not more but different outcomes x 50%.
A 20% discount or 4 in 1 more palatable, but 2 in 1.......and a closed offering, that stings a bit.
I would like to think if the company has the end in sight everyone gets a shot at funding into production....with no warrants as the risk has all but gone if your funding for production.
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