"Common Stock, par value $0.0001 per share AVCT The Nasdaq S...
"Common Stock, par value $0.0001 per share AVCT The Nasdaq Stock Market LLCWarrants, each whole Warrant entitling the holder to purchase one share of Common Stock at an exercise price of $172.50"
meaning...? 172.5!?!? anyone familiar with reading these reports?
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this is my first go at stocks. My God will guide me!
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YYVE : I did
easygoing Lyon OP YYVE : I saw this before saying 11.5 a share. well we know that hasn't happened yet. but after rs now 172.5 which is exactly 11.5x15 so what? is this a price per share target we can expect or..?
YYVE easygoing Lyon OP : I red somewhere 105 so it is close to your figures.
Xiaoxi_penguin easygoing Lyon OP : Warrants gave the right (but not obligation) to buy and sell a security at certain price before expire , which is what we called as exercise price. If the stock warrant is 1000 shares and is sold at $1, the price of warrant is $1 per share , and $1000 total . The thing about the 11.5 warrant before rs was more of a standard warrant price. You could check another ticker’s warrant and it is mostly 11.5.
Xiaoxi_penguin YYVE : 105 was the median price which online analysts predict that it is 7 per share pre-split . It was based on the offering last year where avct mentioned it obtained a 9 per share as an offer but rejected. At that time avct was at around 7 per share market price.
Xiaoxi_penguin : The thing about avct earnings report isn’t about the warrant price (or some would say strike price or exercise price) or earnings (because all of us predicted the earnings to decrease due to the fact that avct announced the sell of shares to sustain operation ), it’s more of the sign of whether it is at buyout stage by looking at certain ssections like assets vs liability etc..
Xiaoxi_penguin : People basically look at the decrease in earnings and sell in panic, while some decide to short it as they know people will get panic over it. The thing is that avct isn’t a normal operating company (neither is it a shell company, you can check the fillings and you could see it declared as not a shell company), thus using earnings to see the future of this company isnt usable.
easygoing Lyon OP Xiaoxi_penguin : oh, damn. this one is strange... declined to sell for 9 a share and here we are at 1 dollar.
Xiaoxi_penguin easygoing Lyon OP : Haha yeah, many speculated that the company thought that it was worth way more than that and it was trying to find a better buyer. It was quite reasonable at that time because the market share price was at around 7 and it being the second largest cloud provider. The company was focusing on finding buyers so much that the daily operation was neglected, thus higher burning rate over time, which causes the massive downfall.