Hall of Fame Resort and Entertainment Co (HOFV)

[trademax42]

Commons at PPS $13.20, what's the worth of the warrants?

Well take a look.

1 warrant = 1.421 shares after merger and when warrants can be exercised.

So, with 100 warrants, 100 X 1.421 X $13.20 = $1876 = shares value when warrants are exchanged for shares.

How much it costs to exchange 100 warrants = 100 X $11.50 = $1150

So the actual worth of 100 warrants = ($1876-$1150) = $ 726 or $7.26 per warrant.

At this time, warrants are trading for $2.30, quite undervalued compared to what's its worth. The .421 extra shares on conversions make a hell of a difference on warrants' valuation metrics.

Those estimates are based on PPS of $13.20 for commons. How much the warrants are worth when the PPS goes to $25 dollars? One can use a substitution property to estimate GPAQW valuation.

$GPAQ

Disclosure: My posts are just my opinion, not intended for investment advice. Do your own DD before buying, selling or holding securities.