Replies to post #29 on Good Works Acquisition Corp (GWAC)

[lambchops]

Sure. Glad to elucidate. There's the company that is acquired. Then the company wishing to become publicly traded, "reverse merges" into that company. That's what a SPAC company does. Acquires the dormant company, files the paperwork to gain custodianship. Then, merges the new company into the dormant company. Of course it takes several months to go through this process.

LC

GWAC

[ChuckBits]

Port, I think of a SPAC like an "empty shell" is on the OTC. I believe a difference may be SPAC's are popping up on NASDAQ so there must be more scrutiny, etc.

A perfect example of a company "reverse merging" (RM) into a shell, or even a "no bid" dormant OTC stock, would be the birth of HVBTF!

Hive RM'd into "PRELF". I owned shares of PRELF which at one time was a traditional gold "mining" company in Canada. (ironic, right? from mining gold to crypto!) It is how I "discovered" Hive. For a brief time, Hive traded under ticker PRELF before the ticker change.

Regarding the warrants, I assure you they won't disappear if/when the GWAC/GWACW ticker changes. The warrants don't expire until 10/22/2025, almost 4 years to go.

Warrants can be very simple & straightforward or they can get complicated. Think of them like leverage. If you are confident GWAC PPS will be much higher a couple/few years from now, you can make more $ with the warrants.

Using yesterday's PPS's, I calculated the potential gain for GWAC vs GWACW. I used $5,000 for an investment example. If GWAC at $15, you would gain an extra $300 with warrants. IMO, not worth it due to extra risk, work, etc.

At a PPS of $30, the additional profit gain for the warrants would be $22.9 thousand.

I'm running out so if you reply it may be a while before I see it.

Cheers