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Another form of option, a stock purchase warrant, entitles its owner to buy shares of a common stock at a specified price (the exercise price of the warrant).
Shareholders of Red Back Mining, based in Vancouver, will receive 1.778 Kinross common shares and 0.110 of a Kinross common share purchase warrant for each Red Back common share held.
One form of option contract is the stock purchase warrant, which entitles the owner to buy shares of common stock at designated prices and according to a prescribed ratio.
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Each unit consists of five common shares and four stock purchase warrants.
TO REIMBURSE TREASURY $3,000,000 to Be Paid Back on Sinking Fund Operation -- Stock Purchase Warrants Proposed.
In the private offering, the company sold approximately 5.2 million shares of common stock and common stock purchase warrants to purchase approximately 1.3 million shares.
Stock purchase warrants are most popular, therefore, at times when stock prices are expected to have an upward trend.
Publicker Industries, 30,000 units (each consisting of a subordinated note due in 1996 plus 40 five-year stock purchase warrants).
Kidder , Peabody & Co. Empire Gas 20,000 units, each consisting of a senior subordinated debenture due 2002 and 100 common shares and 100 stock purchase warrants, rated Caa by Moody's.
Common Stock Asarco Inc. is offering 3 million shares of $2.25 depository convertible exchangeable preferred stock at $25 a share and 3 million common stock purchase warrants at $3.125 a warrant through First Boston Corp.
Stock purchase warrants are given with bonds or preferred stock as an inducement to the investor, because they permit the purchase of the company's common stock at a stated price at any time.
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