Attention, those of you who own Occidental Petroleum Corporation (OXY): OXY has announced a distribution of warrants to current owners of OXY stock. Stockholders of record as of July 6, 2020 will receive 0.125 warrants for every 1 share of OXY owned. The distribution of the warrants is expected to be completed by August 3, 2020.
To illustrate how this will work, let’s hypothetically assume that you have 100 shares of existing OXY stock. After the distribution, you will have received 25 warrants for OXY in addition to retaining the 100 shares of OXY stock you previously owned. Each warrant will entitle the holder to purchase one share of OXY at a price of $22.
At this time, we recommend holding the OXY warrants. The warrants do not expire until 2027. We believe that it is in your best interest to hold the warrants and wait for the price of OXY to appreciate. When the price does appreciate, we will have a number of different options to pursue with regards to the warrants, which will include selling them in the market.
If you have any questions, please don’t hesitate to contact us at support@snideradvisors.com or 1-888-6-SNIDER. We will be happy to discuss the situation with you further.
