When an issuance includes common stock (or the equivalent) and warrants, is it necessary to attribute a value to warrants for purposes of determining whether the common stock portion is at a discount?
Yes. A value of $0.125 (plus any amount that the warrant in the money) is attributed to each warrant. For example, consider a company with a market value of common stock of $10 per share. In the transaction, the company will issue units consisting of one share of common stock and one warrant exercisable at $10 per share. NASDAQ will consider the common stock to be issued at a discount unless the issuance price of the units is at least $10.125. This is without regard to whether the warrants are immediately exercisable.
Related Questions
- When an issuance includes common stock (or the equivalent) and warrants, is it necessary to attribute a value to warrants for purposes of determining whether the common stock portion is at a discount?
- When an issuance includes common stock (or the equivalent) issued at a discount and warrants, are the shares underlying the warrants aggregated with the common stock portion?
- Do adjusting-amount and Adjusting-delay procedures produce equivalent estimates of subjective value in pigeons?
