Dilution 2

Question 1

Warrant Analysis Framework (Example @ $1.20 stock price)

Answer 1

Pre-funded Warrants (2M @ $0.001, no expiry):
→ Treat as shares immediately (already effectively diluted)
March 2024 (3M @ $1.00, exp Mar 2029):
→ In the money → likely to be exercised → adds dilution
Jan 2023 (5M @ $2.50, exp Jan 2028):
→ Out of the money → unlikely to be exercised now → lower concern