Hey ears,
How can the units of SPGS-UN be lower than the shares SPGS?
Shouldn’t SPGS-UN be share + warrant? So warrants are negative?
Arbitrage opp, or just plain confusion?
Dreamer
How can the units of SPGS-UN be lower than the shares SPGS?
Hi Dreamer,
At the close SPGS was at 9.73 and SPGSWS warrants at .603.
With warrants worth 1/5 share that works out to a combined “price” of 9.85.
At the close SPGS-UN was at 9.80.
However, if you bought SPGS-UN today, you can’t instantly convert to shares and warrants. When you
order the conversion to shares and warrants, the process takes several days. Your price on the
converted shares and warrants are figured when they convert, not when you bought them. I’m guessing
the .05 difference represents some pessimism about the future conversion price if you bought today.
It’s a good question. I don’t really know the answer. Just guessing.
Ears
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