I realize this was last week and won't be seen by anyone else, but what you've stated either isn't correct or your wording is just confusing.
That's because you can immediately buy warrants and then buy the stock at the warrant price, meaning you've bought the stock price.
If you buy a warrant of DWAC you have bought the right to purchase a full stock at $11.50 at some point after the merger. In other words, assuming the merger happens and you exercise your warrant at a cost of 11.50, you will own one stock of DWAC, exactly the same as if you bought a stock of DWAC and held onto it until then.
By buying the warrant at the cost of DWACW + 11.50 you save substantial money. The price of DWACW + 11.50 has been averaging a little over half the price of a purchase of a DWAC directly. There is almost no disadvantage here (see below) if you plan on holding on to the stock until after the right to exercise the warrant opens up (after the merger).
you have a limited time to buy the stock
The warrant expires in 2028. There is more than enough time.
If the merger with TMTG doesn't happen, and DWAC doesn't merge with anyone else in the next 7 years (that is technically still possible) then the warrant will expire in 2028 and become worthless. The DWAC stock owners themselves will be refunded at $10 per share.
So lets do a little math:
Current price is ~$60/DWAC and $22/DWACW. If the merger doesn't happen DWAC will be worth $10/DWAC = loss of $50/DWAC. If the merger doesn't happen DWACW is worth $0 = loss of $22/DWACW. Substantially lower loss per share.
If the merger does happen DWAC = $60 (or a whole lot more). If the merger does happen DWACW = $60 - $11.50 = $48.50 (or a whole lot more - $11.50).
If you spend $3000 on DWAC you get 50 shares. If the merger doesn't happen you get refunded $500. If the merger does happen you get 50 shares of TMTG.
If you spend that same $3000 on DWACW you get the option to buy 136 shares of TMTG for $1568 more, OR you can sell your DWACW for TMTG price - 11.50 because once the option to exercise your warrant opens up, they will be worth exactly stock price - $11.50 (not the current half price they are now when its speculative).
Alternatively you could spend 1100 on 50 shares of DWACW now, and potentially lose it all. Thats a loss of 1100 v. 2500 for DWAC for the same negative outcome event.
If you are going to hold onto either one until AT LEAST the merger happens or falls through you win with DWACW v. DWAC. The only real reason to buy DWAC over DWACW at this point is you just don't realize the reality of the economics, or you are day trading.
I realize this was last week and won't be seen by anyone else, but what you've stated either isn't correct or your wording is just confusing.
If you buy a warrant of DWAC you have bought the right to purchase a full stock at $11.50 at some point after the merger. In other words, assuming the merger happens and you exercise your warrant at a cost of 11.50, you will own one stock of DWAC, exactly the same as if you bought a stock of DWAC and held onto it until then.
By buying the warrant at the cost of DWACW + 11.50 you save substantial money. The price of DWACW + 11.50 has been averaging a little over half the price of a purchase of a DWAC directly. There is almost no disadvantage here (see below) if you plan on holding on to the stock until after the right to exercise the warrant opens up (after the merger).
The warrant expires in 2028. There is more than enough time.
If the merger with TMTG doesn't happen, and DWAC doesn't merge with anyone else in the next 7 years (that is technically still possible) then the warrant will expire in 2028 and become worthless. The DWAC stock owners themselves will be refunded at $10 per share.
So lets do a little math:
Current price is ~$60/DWAC and $22/DWACW. If the merger doesn't happen DWAC will be worth $10/DWAC = loss of $50/DWAC. If the merger doesn't happen DWACW is worth $0 = loss of $22/DWACW. Substantially lower loss per share.
If the merger does happen DWAC = $60 (or a whole lot more). If the merger does happen DWACW = $60 - $11.50 = $48.50 (or a whole lot more - $11.50).
If you spend $3000 on DWAC you get 50 shares. If the merger doesn't happen you get refunded $500. If the merger does happen you get 50 shares of TMTG.
If you spend that same $3000 on DWACW you get the option to buy 136 shares of TMTG for $1568 more, OR you can sell your DWACW for TMTG price - 11.50 because once the option to exercise your warrant opens up, they will be worth exactly stock price - $11.50 (not the current half price they are now when its speculative).
Alternatively you could spend 1100 on 50 shares of DWACW now, and potentially lose it all. Thats a loss of 1100 v. 2500 for DWAC for the same negative outcome event.
If you are going to hold onto either one until AT LEAST the merger happens or falls through you win with DWACW v. DWAC. The only real reason to buy DWAC over DWACW at this point is you just don't realize the reality of the economics, or you are day trading.
Listen to this anon, anons: mods.