DWACW give the holder of that derivative the "right" to buy a common share (DWAC) at a predetermined price before a predetermined date stated on the contract. The buyer/owner of DWACW is NOT obligated to exercise therefore buy the underlying security (DWAC) should it not be profitable.

NOT ADVICE

I don't know the exact details on the contract but here is an example.

When you purchase DWACW your not purchasing stock your purchasing the ABILITY or "right" to buy DWAC (common stock) at a future date. Anyone that does NOT own DWACW and wants to own DWAC would have to buy at the market price. You on the other hand may have purchased the right to buy DWAC (in other words you own the warrant) for $7 for a single right to buy DWAC for $19 at a future date, in this case 2028. So in essence in the year 2028 your cost basis for a single share of DWAC would be 7+19 = $26. Fast forward to 2028 and DWAC is selling on the open market for $46. You would exercise your "right" to buy the "common share" DWAC for $19 (plus your original $7 makes the $26) and now you can immediately sell your DWAC on the open market for $46 which yields you a $20 profit per share.

What's in it for Truth Social/DWAC? Working capital today. You advanced them $7 on the chance that you could make a profit in 2028.

What's the downfall for you? The chance that in 2028 DWAC is selling on the open market for $15 per share in which case you would NOT exercise your right to buy at $19 (as stated in the warrant contract) since buying on the open market is cheaper. In this case you would only lose $7 per warrant that you previously invested in 2022.

DWACW give the holder of that derivative the "right" to buy a common share (DWAC) at a predetermined price before a predetermined date stated on the contract. The buyer/owner of DWACW is NOT obligated to exercise therefore buy the underlying security (DWAC) should it not be profitable.

NOT ADVICE

I don't know the exact details on the contract but here is an example.

When you purchase DWACW your not purchasing stock your purchasing the ABILITY or "right" to buy DWAC (common stock) at a future date. Anyone that does NOT own DWACW and wants to own DWAC would have to buy at the market price. You on the other hand may have purchased the right to buy DWAC (in other words you own the warrant) for $7 for a single right to buy DWAC for $19 at a future date, in this case 2028. So in essence in the year 2028 your cost basis for a single share of DWAC would be 7+19 = $26. Fast forward to 2028 and DWAC is selling on the open market for $46. You would exercise your "right" to buy the "common share" DWAC for $19 (plus your original $7 makes the $26) and now you can immediately sell your DWAC on the open market for $46 which yields you a $20 profit per share.

What's in it for Truth Social/DWAC? Working capital today. You advanced them $7 on the chance that you could make a profit in 2028.

What's the downfall for you? The chance that in 2028 DWAC is selling on the open market for $15 per share in which case you would NOT exercise your right to buy and lose $7 per warrant that you previously invested in 2022.