18 December 2024

Howe Street Reporter Title

Pubcos extending warrants as summer drags on, hoping for cash injection in months ahead


Canadian-listed, German-based bioscience accelerator BioNxt (BNXT.C) has announced it plans to give warrant holders an additional year to exercise 2022-purchased $0.50 warrants of the company, as its stock steadily climbs up from a low of $0.20 to $0.305 over the past week.

BioNxt is going through an FDA trial process on a new oral film patform for the MS treatment, Cladribine, and just announced a master services agreement with an international company to get them through their human comparitive bioequivalence study, an important step on the path to commercialization.

If BioNxt can keep its upward trajectory going and hit that warrant exericice mark, it will see a significant cash injection into the company.

Nickel/copper/platinum explorer Power One Resources (PWRO.V) is in a whole different industry, but it’s decided not only to exend 2 million $0.10 warrants for another two years, it’s also re-pricing them down to $0.055 in an effort to attract money in, despite its shares currently sitting at $0.06.

PWRO could use the cash, as it looks to kick back into drilling its PECORS project, which holds promise for nickel, copper, and PGEs but ALSO shows signs of uranium AND rare earths.

Northern Lights Resources (NLR.C) is thinking the same way, extending 3.15 million warrants for a whopping three years.

NLR hasn’t opted to re-price those warrants (they’re listed at $0.10, with the company currently trading at $0.015), but is keen to reward long holders for keeping the faith while the company looks to re-tool.

Garibaldi Resources (GGI.V) is adding a year to its $0.55 warrants, with the share price lingering at $0.095, Fitzroy Minerals (FTZ.V) has done likewise for $0.25 warrants while the stock sits at $0.195, and Sirios Resources (SOI.V) will extend 19m $0.10 warrants for a year while their stock is at $0.055.

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Extending warrants is often a sign that a company believes good times are ahead (or why would you even bother?), so a one year extension can be viewed as a positive signal to the market that, at the very least, work is afoot.

FULL DISCLOSURE: BioNxt, Power One, and Northern Lights have, at various times, been Equity.Guru marketing clients, and we have owned stock in those companies. We remain a BNXT shareholder.

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