Tonix announced in an 8k that warrants have been exercised and that the new share count is 6.4 million. These are the warrants that we have known about, and the reason that we have been using the number of 10 million fully diluted shares.
These warrants have a lot of time value, the same as a call option with years until expiry. From that point of view it would not make sense to exercise them, they should be sold to someone else for the intrinsic value and the time value. They are not publicly traded, but these are large lots and there would be obvious interest.
Ah, *but*, what if one believes that Tonix will get its partnership after October's phase 2b (or not to be) trial, and wants to ring the register at that point? Well, then one had better convert to the common stock now, lest one pay a short-term capital gain.
Meantime these warrants were going to be exercised sooner or later, and now there are millions more cash dollars on the balance sheet.
Also, we are proud of our Tonix blog titles, but need more ideas, please suggest.
Disclosure: I am long TNXP, .