Hi Guys...any of you more experienced guys able to offer a quick over view of warrants.
One of my shares HCEG isued warrants the other day. I trade through Selftrade and want to know a few answers

1..How should I get notified of the warrants situation..by Selftrade or by mail to my home address by HCEG?

2. Who do I sell and buy through ?

3..At what price can I take up those warrants?

4..At what date do I have to make that decision by?

5..At what stage am I able to sell any warrants I have bought?

any help gratefully received from you more knowledgeable ones

Buckets.
I hold HCEG and recieved notification from my Broker(Abbey National)Today.
We got 1 warrant for every 10 shares held as at 12-11-03.We can buy 1 share for every warrant at a price of 1.5p on the 30th june starting 2004 through to 2008.
hope this helps.
graeme.

In spite of the structure of a warrant and the regular reminders you will receive, it is rarely in anyone's interest actually to exercise warrants. This is because the warrants are traded too and the trading price of warrants will include time value, which will be lost as soon as the warrant is exercised. Therefore look to sell the warrants rather than exercise them, unless they trade with a huge spread of course, in which case it may be worth exercising and then selling the ordinary shares.

By exercise, I take it you mean hold until expiry?

-- washlander,

Not necessarily - as per Graeme.Alexander's post, you can exercise any time from 30/6/2004; conversely, you can hold to expiry, and still choose not to exercise (eg, if the warrant is underwater, ie if paying the exercise price costs more than buying the share, then you wouldn't exercise)

Exercising is a specific act - you choose to exercise and pay the premium (aka exercise price) in order to receive the designated number of shares. In this case, you would pay 1.5p for each warrant that you wanted to exercise and would get one share in return, with the exercised warrant being cancelled.

You don't have to exercise - you could sell the warrant at any time; you can exercise part and sell part; or you can let them lapse worthless at the end (if the selling value were less than the transaction cost, for example).

Why no more interest?