I saved a screenshot from a post on here a few weeks ago, and just copy/paste this from it…
Each
whole
warrant
entitles
the
registered holder to purchase one share
of our Class A common stock at a price
of $11.50 per
share, subject
to
adjustment as discussed below, at any
time commencing on the later of 12
months from the closing of this offering
and 30 days after the completion of our
initial business combination. Pursuant to
the warrant agreement, a warrant holder
may exercise its warrants only for
whole number of shares of Class
A
common stock. This means that only
a
whole warrant may be exercised at any
given time by a warrant holder.
No
fractional warrants will be issued upon
separation of the units and only whole
warrants will trade. Accordingly, unless
you purchase at least two units, you will
not be able to receive or trade a whole
warrant.
The warrants will expire five years after
the completion of our initial business
combination, at 5:00 p.m., New York City
time, or earlier upon redemption or
liquidation. believe this is referring to
IPO of WAC which was 03SEP2021,
so it would be in 2026, unless it has
been extended]
At one point, I thought there was another SPAC example in which they basically handled the conversion for you. I think it was something like they took the current share price, subtract $11.50, and then you get the equivalent amount of shares. What you pasted is the more likely scenario. There is also an unanswered question about the tax implication and whether there is capital gains involved.
I saved a screenshot from a post on here a few weeks ago, and just copy/paste this from it…
Each whole warrant entitles the registered holder to purchase one share of our Class A common stock at a price of $11.50 per share, subject to adjustment as discussed below, at any time commencing on the later of 12 months from the closing of this offering and 30 days after the completion of our initial business combination. Pursuant to the warrant agreement, a warrant holder may exercise its warrants only for whole number of shares of Class A common stock. This means that only a whole warrant may be exercised at any given time by a warrant holder. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. Accordingly, unless you purchase at least two units, you will not be able to receive or trade a whole warrant.
The warrants will expire five years after the completion of our initial business combination, at 5:00 p.m., New York City time, or earlier upon redemption or liquidation. believe this is referring to IPO of WAC which was 03SEP2021, so it would be in 2026, unless it has been extended]
At one point, I thought there was another SPAC example in which they basically handled the conversion for you. I think it was something like they took the current share price, subtract $11.50, and then you get the equivalent amount of shares. What you pasted is the more likely scenario. There is also an unanswered question about the tax implication and whether there is capital gains involved.