The exercise price is 30 cents. The buyer has less than 3 months to see that the stock rise above 30 cents. He must be supremely confident of that happening. Otherwise, why buy the warrants?
Best World has done very well since the start of 2013 when it was at 18 cents. Today it touched 24 cents for a 33% gain for the year.
The warrants are due to expire on July 5 this year. Just 2 more months to go.
I think the warrants will simply go unexercised as I don't expect the stock to clear 30 cents by then. The stock must clear 30 cents as that is the exercise price of the warrants.
The 1Q results should be good. Let's wait a little while. In the FY2012 statement, the CEO did hint of better results:
“We expect growth to come from several markets including Taiwan, Korea, China and Philippines, and will set aside more resources to expand our presence in these markets. Tapping on the wealth of experience accumulated, we shall deploy various successful marketing and brand awareness strategies to enhance our customer mindshare."