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No. Covert to mother share to generate cash. When warrant is converted, the chairman gets mother share for cheaper price plus the 4 ringgit per share exercise value goes to the company.
When warrant are converted.. the company gets capital to pay debt or investment. Frontken has not much debt. So they'll use the capital for expansion. At the same time. Warrant circulating in the market will be lesser. If demand stays the same or goes up..warrant price will go up
If chairman’s goal is to collect more shares he would just buy it from open market. But the money goes to whoever selling. Frontken was buying back shares to push it back above 4.00. The warrant chairman warrant convert to mother share and exercise value of 4 ringgit per share goes to raise capital. Warrant doesn’t go to waste. Chairman gets mother shares for lower price. Money he used to exercise goes to the company. Unlikely chairman will be dumping warrant.
