@Deacon - Your rational is flawed for several reasons.  Firstly, if an investor paid an 85% premium to the close, it was a poor buy because the premium would far outweight any tax benefit they would ever hope to gain.  Secondly, the underwriters are the counterparty to FIS and will sell the placement to their clients.  The warrents are just part of their compensation for doing that.  Most importantly, you'll notice that (A) the placement was a bought deal and not done on a best-effort basis, and (B) the size of the placement was increased.  That means there is demand for the stock and the ceiling of which you speak very likely doesn't exist because they form when there is no demand.  There is a good probablity that this stock is going higher.