Q: Hi, I have 20 CSU.WTS . The company that I'm transferring my investment account to can't hold warrants. An option is to just delete them, as they have no value now and I assume they're not worth that much. Could you ball park their future value? I could also jump through hoops to find a way to hang on to them.
thx, Mark
thx, Mark
5i Research Answer:
The warrants will only be listed and have any value at all if the company calls its debentures for redemption. Even then, the warrants only allow for conversion into new debentures. CSU needs to give five years notice of redemption, so the warrants may have some degree of time value, and may vary in price based on interest rate expectations at the time of notification. But we would not expect them to be worth a material amount. A couple of dollars or so, if that, would be our guess.