gcarpen wrote: Generally share price increases leading up to the announcement of warrants as the issueing banks buy shares to hedge and also drive up share price to make the financing look more attractive to buyers. Studies show the price impact in the period after announcement is very negative.
I haven't studied these kinds of cause & effect relationships, but with regard to Banro, my feeling is that the shareprice is affected much more by investor risk-appetite, both with reference to gold equities in general, and specifically with respect to the country & region risks of the locality where Banro operates. As for the effect of the warrants? Well, last summer & fall, there was a block of warrants which were soon to be expiring, which had an exercise price of US$ 2.20, but the existence of those warrants didn't seem to be suppressing the share price, from what I could see.
I could imagine that, if this financing is fully subscribed, it could help to lift the share price, as it would suggest that the buyers of the debt-warrant units were confident that the warrants would soon be in-the-money.