I've searched and read many articles and have found none which explain the most basic questions. So, I'm asking if you can tell me if I'm right regarding the differences between whole shares and warrants.
Friday I was watching GWAC and almost bought in at $10.80ish, but didn't.
https://seekingalpha.com/symbol/GWAC
Then I looked on Ihub and found this new board. I saw your Friday post about buying warrants at $2.60. Is that the same as GWACW, showing $2.25USD. Link: https://seekingalpha.com/symbol/GWACW
Question setup: To buy a "whole" share, now at $11.12USD: Each unit consists of one share of common stock and one-half of one redeemable warrant, with each whole warrant exercisable to purchase one share of common stock at $11.50."
In the 10-K filing it says what you stated in Post 15: "We have the ability to redeem outstanding warrants ... after they become exercisable and prior to their expiration ... provided that the ... common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 trading-day period."
Like I said, I can't find any articles clearly answering these questions.
QUESTION 1: Regarding the whole shares, symbol: GWAC, now trading at $11.12. These are "regular shares," always worth their value. If I buy at $11.12, and it goes to $16.12, then I'm up $5. Likewise, if the price goes to $6.12, then I'm down $5. And if I exercise my right to put together two half-warrants, and wait the proper amount of time, and if the price goes over $18, then I can buy an equal number of Warrants at the $11.150 price. Correct?
QUESTION 2: Warrants: symbol: GWACW, now trading at $2.25. See chart above. Am I correct in my understanding that, unlike the whole shares, the amount paid for the Warrants is forever gone no matter what happens? The value of Warrants is that it's not a half Warrant, but an opportunity to buy a whole share at $11.50, if the SP is above $18 and within the rules, etc. So, the Warrant is a wager that the share price may rise allowing the purchase of a rising stock at a great price, risking only the $2.25. Do I have this right or am I off?
Again, I've searched articles and cannot find this in plain language. I'm hoping you can tell me if I'm on the right track.
One more question, please. In all SPACs, there seems to be a third option, too: What is GWACU: Good Works Acquisition Corp - Units (1 Ord Share & 1/2 War); at 9.99?
https://seekingalpha.com/symbol/GWACU
Thank you to whoever can provide any clarity on this.
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM