Note that the calculation is using today's SP, and it has been significantly higher at up to C$1.47 per share in the period when CE thought they could be executed. At that peak price, the differential is C$1.07 per share, resulting in a total differential of C$8.025m (A$8.84m).
My point is that if CE still believed the warrants were valid—which appears to be the case—it’s reasonable to assume that he expected WR1 to profit from them. The estimated range I provided (~A$7-9m) doesn’t account for any likely discount on a block sale of this size, but the key takeaway is that CE was likely anticipating a multimillion-dollar windfall for WR1 upon executing those warrants.
My concern now is our cash position and whether it adequately supports the company’s needs going forward, if they genuinely expected to have several million dollars more available. If we’re in a solid financial position without it, then I have serious questions about the necessity of the CR, which was roughly the same amount.
WR1 Price at posting:
29.0¢ Sentiment: Hold Disclosure: Held
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