Replies to post #437 on Special Purpose Acquisition Co (SPAC)

[jtomm]

Re Warrants, I thought the same thing when I first started following these. It's usually a long-term warrant, seems like a great deal.

But what I've found over time is that the terms of the warrants can actually change when the SPAC makes an acquisition. And many times it's not even clear that the change has happened or what the new terms are. So they're much dicier than they appear.

Even when you read thru the documents of an acquisition (which can be hundreds of pages), I often still can't figure them out. I've often found that the big money players are actually the sellers of the warrants when they seem like a great deal to you and me, because they have inside info on the terms of the deal.

So bottom line, I've found them to be way more dangerous than they appear.