Nov 19 2010, 09:04 AM
QUOTE(cherroy @ Nov 17 2010, 11:57 PM)
Yes, warrant is a way to raise money.
Yes, warrant does have time frame, generally for ordinary warrant like WA, most are 5 years, can be varied as well.
Once expired, the warrant cease its function and being delisted. An expired warrant is worst than toilet paper, worth nothing. (at least toilet paper got some usage
)
Warrants are issued more as a sweeterner then raising money, in my opinion. I mean at the point of issue. Most warrants are given free during right issues. Of cos, if ever converted into mother shares upon expiry, the company raised some funds.Yes, warrant does have time frame, generally for ordinary warrant like WA, most are 5 years, can be varied as well.
Once expired, the warrant cease its function and being delisted. An expired warrant is worst than toilet paper, worth nothing. (at least toilet paper got some usage
)Just my 2 cents
Added on November 19, 2010, 9:07 am
QUOTE(cherroy @ Nov 18 2010, 10:20 AM)
I suppose it is a Redeemable Convertible loan stock
It just means those loan stock are redeemed and company will/need to repay the bond.
Nowadays, company seldom issues RCLS mostly ICLS, Irredeemable CLS. Upon expiry, just converted to mother shares.It just means those loan stock are redeemed and company will/need to repay the bond.
This post has been edited by tpleong: Nov 19 2010, 09:10 AM
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