NorthView Acquisition Corp (NVAC)

[Devolution]

If you choose to buy, then it is most practical to buy the Rights (NVACR) in units of 10 to avoid wasting $s on fractions that won't be converted to shares...but there will be time.

NVACR won't be converted to shares until well after the announcement, because first the shareholders have to approve (vote on) the selected target.

There is always the risk that a target is not selected and the $ is returned (March of 2023), and in that case the warrants and the rights would expire worthless!

With a price target of above $11.50 for the warrants, NVAC would have to be selling above that price in order for the warrants to have any value.

The risk/reward is like this: If NVAC is trading at $14, then a 10 cent purchase of a share of NVACW would net a profit of $14 - $11.50, or $2.50 (less of course your 10 cent initial investment). Quite a nice return (almost 2,500%) if you have the stomach to weather the risk.

The Rights are less risky, in that they have value even if NVAC is below $11.50 (or $11,60, the point at which the warrants are worth what you originally paid for them - 10 cents), but the ROI for the Rights drops off quickly (in comparison to the warrants) if/when NVAC goes above $11.60.

If my math is correct, and if right now warrants and rights can each be purchased for 10 cents, then the ROI between the two is equal if NVAC is at $12.67. Anything above that, and the warrants would have been the better choice, as the ROI increases much more rapidly for the warrants than the rights.

The conversion to shares will occur when the deal (take over) is consummated, but I do feel that the value of NVAC, NVACR, and NVACW should appreciate nicely upon the target announcement and the period leading up to the finalization of the deal - if such events occur.

Godspeed.