Each warrant entitles you to one stock post merger if you pay the fee to convert (not sure the actual term for that) which I believe is $11 per warrant - or not convert and lose whatever amount you bought the warrant for. You'll have until sometime in 2028 to make up your mind on that unless the new company decides to call the warrants early which they have the option to do (and they usually do...). Once you convert to shares, you'll have to pay tax on any upside difference between the warrant price and the stock price as if it is regular income. That's my very basic understanding on how they work. hope that helps. You can still trade the warrant pre-merger on the open market and avoid the tax and the fee to convert (this is what I plan to do right before the merger as that seems to be when they are at their highest market value, based on recent history on SPAC mergers)