Does anyone know when the last day is to buy warrants?
Also am I understanding correctly that warrants are almost “free money” given that you can buy them for 27.70 and then I believe 11.50 a share at a later date when it is trading at 66 a share? Or is there still risk involved?
This is my first time ever having warrants so I want to get a professionals understanding of it if possible!
Here is the SEC filing. This spells out in great detail, every detail, of the warrant contract.
https://www.sec.gov/Archives/edgar/data/1849635/000110465921090302/tm2117087d2_s1a.htm#:~:text=Each%20whole%20warrant%20entitles%20the,only%20whole%20warrants%20will%20trade
It's bed time reading but very important that you understand your investment.
My suggestion for those not familiar with warrants is that you read over the document over the span of a few days. Print the document. Add a blank sheet in between each page of that document and us it as a study filing. When you run into a term you're not familiar with, stop, research the term and jot down some notes on the blank sheet.
Here is a good source for your research.
https://www.investopedia.com/
Take advantage of the menu bar and search feature. The body of knowledge on that site is vast and anything "stock market" can be found there.
Hope that helps.
So, can we purchase a share at $11.50 each or are there other factors?
"Each whole warrant entitles the holder thereof to purchase one share of our Class A common stock at a price of $11.50 per share, subject to adjustment as described herein. No fractional warrants will be issued upon separation of the units and only whole warrants will trade. The underwriters have a 45-day option from the date of this prospectus to purchase up to an additional 4,500,000 units to cover over-allotments, if any."
'subject to adjustment'
Meaning that there may be an adjustment if shares are split or dividends issued etc. Splits and dividends affect the price of the common shares so an adjustment may be made in those instances. To my knowledge, none of that has taken place with this security.
*Not advice. Please read the SEC filing for terms.
Thank you
Probably smart to just buy out the warrants right after the 30 days is up then.