Mar. 16 at 4:33 AM
$IXHL post 2 of 2
M&A treatment of warrants.
If a buyer offers
$14 per share for the 12 million outstanding shares, they also need to address the 2 million outstanding warrants. The Black-Scholes formula can value the warrants, but likely below
$14 per warrant—possibly around
$7.50–
$9 depending on strike price, stock volatility, and time to expiration. In a buyout, the warrants could be cashed out, exercised and included in the acquisition, or treated similarly to shares so holders receive the same per-share offer.