Yes ...dilution happens if exercise price is less then current NAV ...more the difference more the dilution .
Say for example BRM current NAV 75 ...on exercise date its say 80 Cents ...exercise price is 63 ...4x80 + 63 = 383/5 = final exercise day NAV 76.6 ...assuming all 100% warrants got exercised ....
So if original head shares owners who got 1/4 warrants free ....they needed to sell their warrants for 13.6 cents to not loose to this dilution effect of warrants exercise
Many can sell higher then that and some below ...higher ones made extra money at the cost of less then 13.6 cents ones .
Currently KFL warrants maybe dud so no dilution for head shares but some already sold theirs and made bonus extra ...adding to their returns
When to sell warrants if u can not exercise is a market call ...many times u loose selling early and many u win like this time ...some sold at 12 cents ...ie extra 3 cents bonus per share
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