Hmmm8 Mar 2017 10:55
To expand a little....
Warrant holders are in a very favourable position (although it may have cost them time, money, effort to reach that position) - the warrants they hold allow them to share the benefits of a company's success with a far less downside than a shareholder.
They are entitled to convert their warrants to shares at the agreed price within the agreed duration and the company has to consider that when doing deals, issuing dividends.
I don't know how many warrants LC and the board have, but I hope they have a significant number that means they have plenty of "skin in the game" so that they are incentivised to work for the advantage of shareholders (if we win they win too).
However, I always find it a little disappointing when 3rd parties are issued warrants (e.g. for arranging loans) that will then allow them to have effectively a "free ride" to take advantage of company growth/windfalls as that will effectively reduce the benefits to regular shareholders like ourselves. Unfortunately, warrants are often the price they demand....