Switchback Energy Acquisition Corporation (SBE)

[SilverKnightLV]

Your math is correct, but the difference is you having the (500 x 11.50) $5,750 (~148 shares). So 148 + 199 = 347 shares.

What you are missing is having to tie up $5,750. But that DOES NOT MATTER, because...

The BIGGEST thing you are missing is that you can't rely on the SBE+ price. It's at a discount because it's not redeemable yet. You have to run the math once they are redeemable, which should equal SBE share price - $11.50. That math will be MUCH closer. Plus you have the time it takes for your broker to to the redemption and any redemption fees they may add.

Non-redemption discount: 38.90-11.50=27.40
SBE+: 15.48
Difference:
Discount due to non-redemption status and deal falling through/SPAC failure: 30% (which is on par with other SPAC warrants in the same timeline).


500 Warrants X $15.48 (SBE+ PPS) = $7740

$7740 / $38.90 (SBE PPS) = 199 shares of SBE

Calling the warrants:

$7740 / ($9.28 + 11.50) = 372 shares of SBE

No? Am I missing something?