That's DWACW!!! Legal statement: This is not to be construed as financial advice, blah, blah, blah.......
NOTE: End of day DWAC closing at NEW all time CLOSING high 3rd day in a row. But DWACW is down 5%. This makes no sense?!?! However one explanation I heard is that a BIG short probably tried to hedge by buying warrants and shorting DWAC. Now they are squeezed and buying to cover DWAC and selling DWACW. Whatever the cause - it is a GIFT!!! GLTA!
Got some! Bought last month!
Have some but I eat crayons and have no clue how it works. I suppose I'll get informed when the time comes.
Just hang on. You'll be able to afford magic markers soon!
Yeah, but they don't taste too good
How do they taste? 😆
Sometime later this year they should be PARITY. That means DWAC price minus 11.50= DWACW price. But now they are actually loosing parity?!?!?!? For instance on 2/22/22 DWAC hit a high of 99.03 and DWACW was at 32.28. This morning DWAC hit a high of 100.22 and DWACW only hit 26.50. Someone is dumping warrants. It is an ANOMALY. Anomalies don't last long in the market. Just sayin!
I have some DWAC, but am wary of the warrants, due to my flakiness... When do the warrants become options to buy? What will happen then? If I buy some DWACW, what do I do to ensure I don't miss the boat on using them to buy the DWAC stocks when it's time?
The DWAC warrants mature 12 months after issue (Sept. 2022). Buy them. They are on a massive sale.
I bought 15 DWAC, and 15 DWACW, I got in on both sub $20, otherwise I probably would have gone all DWACW.
Actually, 10 DWAC I got at $17.76, I forget the other 5, and 10 DWACW I got on the cheap, but the last 5 were $42.16.
Wish I could have bought more, but I am a man of limited means. I have already moved the funds in though to cover the DWACW to DWAC fees so all is well.
Well, I'm an amateur mind you, when you buy DWACW, it's a Warrant. When you execute the warrant, you pay a nominal fee and receive 1 share of DWAC.
There is a timeline to execute, and a time limit, I think the limit is 5 years, and I think to execute, the merger has to happen, merger between DWAC and TMTGR (Trump Media, not sure the exact ticker).
So once the time to execute is upon us, you can pay $11.50 per warrant to "convert" each to a share of DWAC. So after the execution, you'll have paid $11.50 plus the DWACW per share price you paid to receive a share of DWAC times however many DWACW shares you have.
Hope that makes sense, God bless, and hold!
u/Furecrotch u/cdwill u/SOTUisFUBAR u/master_kek
According to this, DWAC warrants (DWACW) mature in September, which makes sense since that is 12 months after initial warrant offer.
Nevertheless, the price for DWACW right now should be at DWAC - 11.50 (or close to it). The merger has been announced, so its no longer really "speculative". I can see no reason why they are still on sale, except short-sale fuckery.
From your link, I don’t see why they couldn’t merge, wait 45 days for warrant redemption and then convert from DWAC to TMTGR
You say almost always, what prevents them from adding a delay?
Thanks for the clarification on the timeline!
And don't forget to short Moderna (MRNA) with a few bucks too. Biggest pump and dump, ever.
For those still trying to understand SPAC warrants here is the beginning of a 3 part article that explains it thoroughly. Read them all and you will become a warrant expert: https://matthewssouth.com/post-spac-warrant-redemption-features-part-1/#:~:text=Because%20investors%20always%20have%20the,i.e.%2C%20no%20time%20value).
I didn't read it in its entirety, but this seems to imply that the stock price of DWAC will have something to do with the redemption price. I thought the redemption was simply give us $11.50 more, you get a share of DWAC, but you're on the hook for the gains because DWAC is now worth $xxx.xx and you got it for a lot less.
Your original though: "Redemption price is 11.50" is correct. The other stuff you wrote is NOT.
Thanks. From a previous discussion, and putting aside an IRA, do we then agree the tax liability is the difference between the warrant price + $11.50 and the market price at the time you convert?
I am assuming that the market price at conversion minus 11.50 and minus what you originally paid for the warrant MIGHT be your tax liability. IF that liability is incurred WHEN you convert then I would highly recommend selling the amount you need to pay the taxes. Otherwise, if the stock drops and LGB comes looking for you, then you will still be still liable for the gain at conversion. My thought - cross that bridge when you get there. And ask an accountant. The main question - is tax due at conversion?
So I have shares of DWAC, that I originally got at $19, yeah me:)
Can someone help me understand if I were to buy 10 shares of DWACW, what would happen down the road? Does that convert to DWAC? Will the price jump to DWAC less the 11.50. Not in trading much so don't understand the warrant aspect. Thanks for the help.
If you are gonna panic like this guy.... PLEASE do not even look at the warrants. PLEASE do your DD. Yes it is like an option. Yes if you don't exercise in 5 years it will expire..... 5 YEARS!!!! Folks it is not that complicated. Warrants are not trading at parity yet. But they will ......... soon. If you are gonna HOLD and not trade....warrants are the best deal right now with DWAC. With ANY investment (stock or warrants) you can loose it all. But I personally am all in with DWACW!
I have 174 of them..
This might be up there with "Get your vaccine now for the greater good" as the worst advice ever given.
The merger has been announced. It is no longer speculative. DWACW will be worth DWAC - 11.50 come september (likely long before). They are on sale atm. There is no reason to not buy them.