Category: Managing A Public Company

How Hedge Funds Make Money on Warrants

I’ve been CEO of two public companies, and on the board of several other public companies. It’s always puzzled me a bit how hedge funds made money on warrants.

When a small biotech company raises money, it often has to offer warrants in order to raise capital. For example, it might sell 10 million shares of stock (usually at a discount to market, let’s say of 10%), and offer

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