How often do companies extend the excercise date for stock warrants?

Question

I bought warrants in a company, and the price of the warrants has tanked because it does not look like the stock will reach the exercise price before they expire. I am wondering what are the chances of the warrant dated being extended.

Answer 1

The chances of the warrant exercise date being extended are very low. The stock price is already down, which probably upsets stockholders. Extending the exercise date would make it more difficult for the stock price to recover and could push the stock price further down, thereby further upsetting stockholders.

It would be better for the company to let existing warrants expire, followed by the sale of new warrants with a new exercise date. That would at least bring in some new revenue for the company.