RE: Shares8 Jun 2023 08:16
Hi Jimi,
The RNS states that the Investors (RF) have been granted warrants:-
From the RNS:-
''Investors have been granted 682,730 warrants equal to 40% of this drawdown divided by the Reference Price of 17.57648 pence. The exercise price of the warrants payable to the Company will be 140% of the Reference Price equating to 24.6071 pence.''
So how does this work out:-
40% of this drawdown = 40% of £300,000 = 120,000, and 120,000 divided by the reference price of 17.57648 pence = 682,730 warrants
The exercise price of these 682,730 warrants is 140% of the reference price of 17.57648p = 140% x 17.57648 = 24.6071p payable to the company.
Therefore 682,730 warrants x 24.6071p = £168,000
Google states:-
How do share warrants work?
A stock warrant is a type of derivative that gives the holder the right to buy a share of a company for a specific price within a set window of time or on a specific date. Companies will often issue them to raise capital, or as an employee benefits, recruitment or retention package