Sep. 19 at 8:13 PM
$SBC Possible (and that would be awesome) but unlikely. The company can't force the exercise of the warrants. But if the common trades above
$18.00 for 20 days in a 30-day trading period, then they can (after a 30-day announcement) redeem them them for a penny, which pretty much forces their exercise.
So there are two possible strategies for the company if they want to do that:
One is to get cash and dilution - hold the common above 18 for a month and announce redemption. Then hold it up for another month. Everyone exercises to get 18 dollar shares for 11.50.
The second is to get rid of the warrants altogether - take it above 18, announce redemption, then immediately take it back under 11.50. No one will exercise but the company wipes out the warrant liability with the warrants.
If they pump this with the warrants in mind, holders will have a month to figure out their endgame. As for me, I'll be a seller long before 18...
