💥🦁🌎 DWAC VOTE FOR MERGER ANNOUNCEMENT 💥🦁🌎
🏆 - WINNING - 🏆
I just received a notice to vote for DWAC approval:
- To approve the Merger of DWAC
- To change the name to TMTG - Trump Media & Technology Group
- Board Structure and Composition
- Amendment to Blank Check Provisions
- Authorized Share Charter Amendment
- Amendment and Restatement of the Digital World Charter
- Elect to Director: Kash Patel, W. Kyle Green, Linda McMahon, Donald Trump Jr, Eric Swider, Devin Nunes, Robert Lighthizer
- Incentive Plan Proposal
- The Nasdaq Proposal
- The adjournment Proposal
Special meeting of stockholders to be held March 22nd, 2024 to approve the merger of DWAC and TMTG.
Has any else received notice and voted?
Please share your thoughts in the comments!
Note: No part of this post is meant to be financial advice for anyone. Talk to your financial advisor, and tax accountant, and people you personally know and trust, before making any financial decisions.
Hodling DWAC warrants (DWACW)- do I get to vote? (Assume not because I have not received any notice). Plan to sell right before merger then put some back in DWAC after merger (anticipating shorts driving price down post merger - just a hunch)
If someone can explain the difference between stock, Warrants, and units, that would be very helpful to those who may own different types.
Here's the gist, buying a share is a full share, buying a warrant is buying the right to convert it to a share if the merger goes through.
If you buy a share and the merger fails, I believe you get the price paid back, if you buy a warrant though you get either nothing, or a fraction of paid price.
The warrants are, if I recollect, $12 to convert, I paid under $20 for all my warrants so once converted I'll have shares at less than $30 per. Although I bought fairly early so even the shares I did buy were well under $20.
I'm sure there's more to it than that, but I'm not that knowledgeable enough, maybe someone else will chime in. But as far as units, I don't remember, but it also depends on what broker you're with. My DWAC & DWACW is with E*Trade, they don't offer Units, I also have an account with IBKR, they only offer DWAC, no warrants or units.
Hope that helps!
Thank you! This is helpful and sounds like I could use a little more definitive feedback as well.
$11.50 to convert
Stock is a share of the company. Warrant is like an option to buy a share for a set price post merger - warrants can only be bought and sold pre merger. A Unit contains both a share AND a warrant (or a fraction thereof). Hope that helps
Thank you Red Pill.
Please clarify.
You say Warrants are an option to purchase post merger, but then say they can only be bought and sold pre-merger. So how do you convert it post merger if it cannot be sold?
Does anyone need to sell Warrants or units before the merger takes place?
You can only purchase them before the merger - after the merger, they act like a stock option that you can either execute and pay the $12 (to the new company) to convert to a share (plus any taxes due) or do nothing and lose your initial purchase price for the warrant. Before the merger, you can trade them on the open market (buy and or sell to other investors) just like they were stocks.
No one NEEDS to sell them pre merger but you do not have that option available to you post merger so ... if you think the stock will drop in price shortly after merger (which I do) then it may make since to sell the warrants pre merger when they are trading at a premium, wait for the merger to happen, buy shares of stock after the drop, avoid paying the $12 fee to convert the warrant and any associated taxes you may owe.
I am going to add to this discussion from research I am doing to hopefully benefit all anons.
What Is a Stock Warrant, and How Do They Work?
Stock Warrants 101: An Explainer
DWAC Warrants appear to expire Jun 30th, 2028. This would be a date in which you must sell them or lose everything. https://www.cnbc.com/quotes/DWACW
Pros
Cons
Important It appears that if one were to exercise Warrants after DWAC/TMTG goes public, i.e. merges, then any gains will be taxed as ordinary income. Depending on how much the stock value explodes, if it does, this could be a huge tax hit for some. Everyone should research their own situation on this. Taxation of Stock Warrants
Not financial advice. Do your Own research. Contact your financial planner and CPA before making financial decisions. Work with people you personally know and trust.
yea, what he said^^^^^
The new company has the option to call the warrants to raise money post merger (which they VERY often do) in which case you cannot just sit on them. I'll still hold onto a few just to see what happens with them because the payout could be yuge but I'm not willing to bet the farm on it.
Nope, no vote on warrants. Why sell? Converting them to full shares is only $12 per warrant once the merger happens. My thought anyway, I have a mix of DWAC & DWACW, I'll just pay the fees and be done.
Why sell? Money. Historically, the price of warrants bump up as the merger date gets closer. The stock price tends to drop post merger because of profit takers and shorts. You can trade warrants just like the stock pre-merger but can only execute the warrant post merger AND pay the tax on any increase in value so its not just the $12 .
My plan, sell warrants for a profit pre merger when they are at their highest, use that money to buy stock post merger after stock price drops back down after initial exuberance dies down. Avoid paying $12 fee to covert and not pay taxes on the profit (I anticipate TMTG to call the warrants so I don't think I'd be able to just sit on them)
Hmm, interesting...
Something to keep an eye on, thanks for that!
I'm reading that SPAC warrents will trade post merger.
https://www.sofi.com/learn/content/spac-warrants-explained/
is their something different with DWACW?
Nope - I stand corrected. investors can buy and sell on the open market after the merger as well - I was confusing this with the when they can be issued by the SPAC, which is before the merger only. I still believe they will be at their highest valuation (in the case of where I bought them, at least) right before the merger. I will still hang on to some until after the merger and hold out until forced to redeem them by the new company (TMTG). New stock has to be issued for any warrants redeemed so if that happens all at once, either by a call or by them redemption date (June 2028). and that tends to drive the price down through dilution....or so I've read...
$11.50 to convert
Can I still buy stock
Yep, sure can as long as you have a trading account and funds.