Replies to post #125 on Tattooed Chef Inc (TTCFQ)

[dinogreeves]

I own both, I always buy the warrants and the commons, but I went much, much bigger on the warrants.

[haber]

I think the idea is that given the situation, the warrants present waaaay more upside.

Imagine a big merger and FMCI gains 300%, so ends up around $44.

The warrants allow you to buy common shares at 11.50. If FMCI goes to $44, the warrants would have a value of $32.50 (44-11.50). Thats like 3000% from where they are now, instead of the 300% gains from just owning straight stock.

The downside is that there’s more risk. If the merger sucks and FMCI ends up at $9, the warrants could end up worthless, while stock would only be down 20%. I HIGHLY doubt that will happen given what we know here and how these tend to play out, but that’s the risk side of the equation.