4 Comments
User's avatar
Corgi's avatar

For the optionality to convert into BRK shares at the end, does it mean BRK has to issue new stocks to discharge the obligation? How do the technicalities work?

The Fat Pitch's avatar

If you go to 2007 AR, note 16. They issued 3715 Class A equivalent shares for the warrants exercised.

The Fat Pitch's avatar

Yes the option is to buy 0.1116 brk.a shares at exercise price $10k. BRK issues shares, but no fractional shares, if u choose brk.a the remainder will be in brk.b.

Corgi's avatar

that is quite a financial curiosity