If market crashes further and negative sentiments continue for another 6 months then it would affect JKH converting its warrants.
If JKH.N trades below 185/= in September 2015 the management of JKH would fail to convert the warrants.
We have seen failures of many warrants in recent past. Eg: CLPL, GREG and REEF to follow. But these failures do not affect the overall market and investor confidence.
But if JKH fails that would mean a nasty blow for CSE, investors and for the overall market and economy as JKH is the main share that all local and foreign investors trust. JKH has always been the investor favorite for many years for locals and foreigners. Failure of JKH would lead many foreign investors moving away from SL market. The will create exchange pressure and negative image for the economy.
Would the management of JKH allow the warrants to fail? Beyond financial reasons the reputation and prestige are matter to JKH and its management.
Source: Market Future