Member Info for Professor1

Yes, the current market price of a company's shares will typically reflect the potential future dilution from a new issuance of shares via prepaid warrants. Here's why:

Explanation:

Prepaid Warrants and Future Issuance:

Prepaid warrants give the holder the right to purchase shares at a specified price within a certain period. When these warrants are exercised, it leads to the issuance of new shares, diluting the existing shareholders' ownership percentage.

Market Anticipation:

The market typically anticipates future events, including the potential dilution from warrants. Investors will factor the potential future issuance of shares into their valuation of the company.

Impact on Stock Price:

If the market expects a significant number of shares to be issued due to warrant exercise, it might already reflect a lower price than it would have if the warrant issuance wasn't anticipated. This is because the potential dilution would reduce the value of each existing share.

Dilution Calculation:

The Diluted Earnings Per Share (EPS) calculation would also reflect the potential future issuance of shares via warrants, further impacting the company's financial performance metrics.

Example:

Imagine a company with 100 shares and an anticipated warrant exercise that will lead to the issuance of 20 new shares. The market might already discount the stock price by considering the future dilution, even before the warrants are exercised.

In essence, the potential dilution from prepaid warrants is usually priced into the market ahead of the actual issuance of the shares, impacting the current market price of the shares.

PK73

Spot on.

Can't wait for Monday. MB has put in phenomenal mount of hard work into this to get to the position we are in and yet, he gives huge amount of credit to the shareholders. He is not your typical ceo. His track record for what he achieved for the shareholders when he was the ceo of the oil and gas company in India speaks volumes.

GLA

PK73

Thanks for posting that article.

GLA

@Hopefulpatience - great words for MB and everyone here would certainly echo that

All have a very good weekend and GLA.

@Peoplepower1

Spot on.

Its called Chimp Paradox. We humans 90 per cent of the time do not think rationally. We react to situations but only realise the mistakes later.

Dry powder ready to buy more on Monday.

GLA

80 Mile in pursuit of acquisition and need money so as not to dilute its shareholders I believe

@NTTL

I can check with MB after some time and will post

Good luck everyone.

Guys, can't wait.

@ejt7777

I did back of the pack calculation at the back of the Tethyan case against the government of Pakistan.

I am hoping PAT puts in big claim of $2.8 B. And, I hope we eventually settle for half that.

GLA

@190945

Would appreciate the share names.

Thanks

I like this bit:

"LCM took the case on after spending nearly a year working through 1,900 pieces of evidence that Panthera Resources had provided for its due diligence."

NOTE: 1900 PIECES OF EVIDENCE

GLA

@Tiddler

Indeed. Received swift response back from Mark " We will make an announcement once it's lodged"

I have written to Mark on another point vis a vis SOC delivery checking if the SOC will be delivered by our lawyers in the UK to their lawyers also in the UK bearing in mind that India are 4 and 1/2 hours ahead of UK time. We don't want them to be claiming that they had finished the day when the SOC is delivered on say Friday afternoon.

@topsharepicks

Not sure what to make of it. Someone needing reassurance?

Ah, now its come back to show the value totals and gain totals.

States this "Customised table views are temporarily unavailable. The default table columns are shown below. We apologise for any inconvenience caused."

Logged in and shows zero values

For some reason, Hargreaves site is not available. Anyone experience this? Thanks

@Enki

People worrying unnecessarily was not getting us anywhere. Hence, had to write to Mark.

GLA