Originally Posted by
alokdhir
All holders were allocated 1 for 4 KFL shares held, warrants KFLWH ...which some are assuming to be free and ready to sell at any price ...
In fact these are insurance against future dilution in NAV of their held KFL head shares .
Only in case of they going worthless ie market SP of KFL on 26th July 2024 is less then offer or exercise price of around $ 1.25 / 26 they will be better off then the holders who held on to their warrants till last month to see what effect they may have on NAV of their held KFL shares .
It seems many are taking a bearish view of markets 13 months hence are happy to sell at current prices ....if markets do some recovery and NAV dilution is more then what price they are getting now then they will be losers as their KFLs nav will get more diluted then what they got out of current sales of warrants .
Maybe many dont understand the final mechanisms of these warrants when they get exercised .
If view is that KFL sp will be below exercise price thus no dilution will happen then ONLY selling them at any price makes sense but if by any chance dilution is more then proceeds of the warrant sale then its a loosing proposition ...at current price of 7 cents ...it covers dilution of less then 2 cents !!