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Re: Valuetrader post# 74

Tuesday, 07/18/2023 4:03:05 PM

Tuesday, July 18, 2023 4:03:05 PM

Post# of 76
These warrants are likely to expire worthless. The latest EAC proxy just clarified they anticipate an upcoming share price of around 82 cents (that's for the common stock, not the price of the warrants). The math for that is 5,640,000 (amount of money Edify initially paid for the 5.64m warrants) divided by 6,900,000 (the new amount of Class A shares after all of the current shares are redeemed and paid out, plus the 6.9m Class B shares Edify will convert to Class A) equals 82 cents/share. The warrants are already dropping from 4 cents to 3 cents and only suckers are buying those from thankful holders of warrants looking to dump. The strike price for the warrants is $11.50/share which just isn't going to happen. It's all in the proxy.

Here is the direct language from the filing:

"If the Founder Share Amendment Proposal is not approved and the Company does not consummate an initial business combination within the Combination Period, in accordance with our charter, the 5,640,000 private placement warrants purchased by the Sponsor for an aggregate investment of $5,640,000, or $1.00 per warrant, will be worthless, as they will expire. The private placement warrants had an aggregate market value (assuming they have the same value per warrant as the public warrants) of $233,496 based on the last sale price for the public warrants of $0.0414 on the NASDAQ on July 7, 2023 (the record date);

• Even if the trading price of the Class A common stock were as low as $0.82 per share, the aggregate market value of the Sponsor’s founder shares alone (without taking into account the value of the private placement warrants) would be approximately equal to the initial investment in the Company by the Sponsor. [This is me inserting the math again. The initial investment was $5.64m. The converted 6.9m founders shares valued at 0.82/share will equal $5.64m.] As a result, if an initial business combination is completed, the initial stockholders [they are referring solely to Edify here. All of the other "initial stockholders" will have redeemed. Of the original 280m shares, only 1.7m are left, and those will likely all be redeemed on Thursday, July 20.] are likely to be able to make a substantial profit on their investment [remember, as clearly stated in this proxy and elsewhere, Edify only paid $25,000 for those 6.9m Class B Founders Shares. Yes, Edify will hold 6.9m Class A shares which, at 0.82/share will be worth a substantial profit of $5.64m.....to Edify!!] in us even at a time when the Class A common stock has lost significant value. On the other hand, if the Founder Share Amendment Proposal is not approved and the Company liquidates without completing its initial business combination before January 20, 2023, the initial stockholders [Edify] will lose their entire investment in us [because the $5.64m real dollars Edify paid the company for the 5.64m warrants will never be recouped by Edify because those 5.64m warrants will expire worthless]."

That is EXACTLY what the proxy states in muddled, legalese, hide the ball language. Hope this helps anyone "investing" in the warrants at any price or worse, EAC regular stock at $10+