RE: Late buys19 Jul 2019 19:03
Difficult to say on the one hand it’s ok because if they convert say 1 million at say 2p raise £20k the Arcm get paid but the downside is one million new shares are created that need buying hence why I believe for every buyer we are seeing a seller
Ultimately it helps ARCM pay for drilling without needing to sell assets or raise cash via placing ect
It certainly would be far better to have no warrants outstanding!
The broker, market maker and I believe management all know if there is a warrant conversion being worked through.
For example the best run companies don’t have warrants like Apple for example because they’re making so much cash they’re only problem is what to do with the cash. ARCM needed cash to get it where it is today so issued warrants in the past.
Incidentally NICK hasn’t replied to my question today asking the exact numbers.