fw : ats warrants it appears that we are marking to the full option model value . let us know what we need to do .
- - - - - original message - - - - -
from : whiting , greg
sent : tuesday , october 16 , 2001 10 : 34 am
to : hodges , georganne ; coffey jr . , jim
cc : gruesen , karen
subject : re : ats warrants
there are 3 . 0 mm ats warrants in two tiers . one is a tier of 1 . 0 mm with an exercise of 1 . 10 cad that expires 3 / 2003 . the second is 2 . 0 mm with an exercise price of 0 . 85 cad that expire 9 / 2002 . the are valued using the black - scholes by shona wilson ' s group . the model is signed off on by jean mrha . ats is publicly traded . current value on the gl is $ 762 k usd . this is after a 3 rd qtr write down of $ 751 k usd . i would think they should contact shona ' s group if the model that is used to value the warrants does not capture the true value .
greg
- - - - - original message - - - - -
from : hodges , georganne
sent : monday , october 15 , 2001 8 : 11 pm
to : whiting , greg ; coffey jr . , jim ; whiting , greg
cc : gruesen , karen
subject : fw : ats warrants
jim killen , faith
subject : fw : ats warrants
cris
bit of an issue here . i had thought we were marking purely the intrinsic value of the options due to their illiquid nature . i really think we need to mark these down to real values unless we can prove out the value by selling a proportion of the warrants into the market .
we also clearly have a write down from the number on the balance sheet which is way too high .
please could you evaluate the warrants and come up with a proposal of how we deal with them .
thanks
louise
- - - - - original message - - - - -
from : miller , kevin
sent : monday , october 15 , 2001 4 : 09 pm
to : kitchen , louise
cc : rainer , eva ; druzbik , lisa ; mrha , jean
subject : ats warrants
louise ,
i do not think it is possible to begin selling the ats warrants at this time .
per the ats warrant certificate , the ats common shares issuable on exercise of the warrants may not be sold , transferred or otherwise traded until march 20 , 2002 . the warrants are also non - transferable except to an affiliate .
in addition , the ats warrants are valued daily using a black - scholes model . the spreadsheet with the result of the evaluation is attached . the current value of the warrants is $ 762 , 600 usd using the evaluation model . however , the current ats stock price on the canadian venture exchange is $ 0 . 97 c with an warrant exercise price of $ 0 . 85 c for the first 2 , 000 , 000 share tranche . the second 1 , 000 , 000 share tranche has an exercise price of $ 1 . 10 c . thus , the current value is considerably less than the black - scholes evaluation model is calculating .
>
if you have any questions please give me a call at extension 33541 .
kevin miller
fw : ats warrants
it appears that we are marking to the full option model value . let us know what we need to do .
- - - - - original message - - - - -
from : whiting , greg
sent : tuesday , october 16 , 2001 10 : 34 am
to : hodges , georganne ; coffey jr . , jim
cc : gruesen , karen
subject : re : ats warrants
there are 3 . 0 mm ats warrants in two tiers . one is a tier of 1 . 0 mm with an exercise of 1 . 10 cad that expires 3 / 2003 . the second is 2 . 0 mm with an exercise price of 0 . 85 cad that expire 9 / 2002 . the are valued using the black - scholes by shona wilson ' s group . the model is signed off on by jean mrha . ats is publicly traded . current value on the gl is $ 762 k usd . this is after a 3 rd qtr write down of $ 751 k usd . i would think they should contact shona ' s group if the model that is used to value the warrants does not capture the true value .
greg
- - - - - original message - - - - -
from : hodges , georganne
sent : monday , october 15 , 2001 8 : 11 pm
to : whiting , greg ; coffey jr . , jim ; whiting , greg
cc : gruesen , karen
subject : fw : ats warrants
jim killen , faith
subject : fw : ats warrants
cris
bit of an issue here . i had thought we were marking purely the intrinsic value of the options due to their illiquid nature . i really think we need to mark these down to real values unless we can prove out the value by selling a proportion of the warrants into the market .
we also clearly have a write down from the number on the balance sheet which is way too high .
please could you evaluate the warrants and come up with a proposal of how we deal with them .
thanks
louise
- - - - - original message - - - - -
from : miller , kevin
sent : monday , october 15 , 2001 4 : 09 pm
to : kitchen , louise
cc : rainer , eva ; druzbik , lisa ; mrha , jean
subject : ats warrants
louise ,
i do not think it is possible to begin selling the ats warrants at this time .
per the ats warrant certificate , the ats common shares issuable on exercise of the warrants may not be sold , transferred or otherwise traded until march 20 , 2002 . the warrants are also non - transferable except to an affiliate .
in addition , the ats warrants are valued daily using a black - scholes model . the spreadsheet with the result of the evaluation is attached . the current value of the warrants is $ 762 , 600 usd using the evaluation model . however , the current ats stock price on the canadian venture exchange is $ 0 . 97 c with an warrant exercise price of $ 0 . 85 c for the first 2 , 000 , 000 share tranche . the second 1 , 000 , 000 share tranche has an exercise price of $ 1 . 10 c . thus , the current value is considerably less than the black - scholes evaluation model is calculating .
>
if you have any questions please give me a call at extension 33541 .
kevin miller