Warrants: The Dilution Hiding in the Fine Print

Shares are not the only thing a micro-cap hands out when it raises. Attached to many of those deals are warrants: the right to buy new stock from the company later, at a fixed price. They sit quietly in the filings, invisible until the stock moves, and then they convert into a fresh wave of supply, right when things finally look good.In this episode, Atlas and Michael cover what a warrant actually is and why it is dilution that has already been promised but has not landed. How to find the strike price, the count, and the expiration in the warrant footnote of the 10-Q and 10-K on EDGAR. Why a low strike is a hidden overhang that presses on every rally. And how to build a fully diluted share count from the capitalization table, so the dilution you can see and the dilution you cannot are finally on the same page.The share count tells you the dilution that has happened. The warrants tell you the dilution that is coming.Twenty research dossiers and the weekly roundup at watchlistwire.com. Independent editorial research. Section 17(b) disclosed.