Warrants Clarified28 Jun 2024 17:14
Hello all.
Lets put to bed this warrants issue right now. There are:
0.025p = 2.2bn warrants (excluding AC and Harveyās small amount)
0.07p = 428,571,428
0.15p = 571,428,571
When converted they will bring in =
0.0025 = Ā£419,000
0.007 = Ā£300,000
0.015 = Ā£857,143
Total Revenue Generated from warrants = Ā£1,576,143
As with any new shares coming onto the market, to churn through the overhang caused by the new shares roughly 3 to 4 times the amount of shares need to be traded.
This month alone, including today, just over 13 billion shares have been traded. THIS MONTHS VOLUME ALONE OF 13 BILLION SHARES ARE ENOUGH TO CHURN THROUGH THE WHOLE WARRANT ALLOCATION IN ITS ENTIRETY.
This by no means will be the busiest month in terms of volume with lots of News to come over the summer.
So to clarify, there is no risk with regards to warrants aside from a temporary stunting of the share price when they are converted. The positives are they will generate significant revenues for the company that will ensure cash raise placings are not needed (as clearly stated by the CEO in the recent presentation)
Also, the warrants are triggered in each increment once we achieve a certain price (0.07 & 0.15p etc) So they will be gradually drip fed into the market. However, as Iāve just demonstrated earlier in this post, even if all of the 3bn+ warrants were to be exercised tomorrow, the entire lot would be burned through in a few weeks.
So, I think we can all agree that the warrants, may stunt the SP temporarily, but they bring wealth and security to the company and compared to the volume weāve seen recently and the large volume we will see over the course of the summer given the News items scheduled, they will be churned through very efficiently indeed. So, letās put this subject to bed now.
Have a good weekend all!
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