Warrants are typically short term plays by nature as they are derivative of the option chain with expiration dates. Options lose money each day they are out, and the rate of decline accelerates as you near expiration. Be sure to read up on them before investing. DWAC is a common stock and traditional to what most people can hold long term. I don't believe DWACW (warrants) offer as many benefits as common stock ie. splits, dividends, or this DRS talk of directly registering your shares directly.
TL;DR, these earnout shares are for the shareholders of TMTG, pre-merger. Those would be the people putting up the initial stake and the execs getting this thing off the ground.
There are targets to hit relating to the stock price, and are payable after 3 years... it's an incentive to drive the company's value, not a freebie to us acolytes.
Warrants are typically short term plays by nature as they are derivative of the option chain with expiration dates. Options lose money each day they are out, and the rate of decline accelerates as you near expiration. Be sure to read up on them before investing. DWAC is a common stock and traditional to what most people can hold long term. I don't believe DWACW (warrants) offer as many benefits as common stock ie. splits, dividends, or this DRS talk of directly registering your shares directly.
Adding a correction to every comment and then deleting--- my post is an error! Here is what another commenter posted:
Hol' up, hoss. These 40M shares are not for us.
Sauce: https://www.sec.gov/Archives/edgar/data/1849635/000119312521308146/d230221d8k.htm
TL;DR, these earnout shares are for the shareholders of TMTG, pre-merger. Those would be the people putting up the initial stake and the execs getting this thing off the ground.
There are targets to hit relating to the stock price, and are payable after 3 years... it's an incentive to drive the company's value, not a freebie to us acolytes.