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NVCN stated in their 6K form the following statement

10,273,972 Series C Warrants were originally issued in the 2017 Public Transaction, and 5,388,706 remain issued and outstanding at the close of business on April 11, 2018. Each Series C Warrant may be exercised at an exercise price equal to US$1.46 (subject to adjustment) at any time prior to 11:59 p.m. (New York time) on November 18, 2019 for a Series C unit (a "Series C Unit"), with each Series C Unit being comprised of one common share of the Company (each, a "Common Share"), one Series A warrant (a "Series A Warrant") and one Series B warrant (a "Series B Warrant").

The portion where they state, Each Series C Warrant may be exercised at an exercise price equal to US$1.46 - Does that mean they can exercise the warrants at $1.46 or lower, or $1.46 and higher?

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Warrants are basically call options, with the exception that the stock received by the holder is issued by the company (diluting existing issued shares) rather than provided by the seller of the call.

So the warrant will (most likely) be exercised if the value of the stock (plus the value of the other two warrants that are issued) is more than $1.46. The holder of the warrant will buy the option for $1.46 and be able to immediately sell it on the open market for a higher price.

  • Or the holder may keep the share if their expectation that the share price will rise further. – TripeHound Apr 12 '18 at 15:14
  • @TripeHound true, but on paper there is an instantaneous profit. They would not exercise the option if the price was below $1.46 (since they could but it on the open market for less). – D Stanley Apr 12 '18 at 15:23
  • Sorry, I think I missed the "be able" bit and read it as "buy-the-option / sell-the-share", hence my comment. – TripeHound Apr 12 '18 at 15:28
  • @TripeHound No worries - it's a valid point :) – D Stanley Apr 12 '18 at 15:35

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