Warrants Explained For Beginners | How Do Spac Warrants Work? How do you exercise / redeem warrants?

SPAC Warrants explained! SPAC and stock warrants can be a little complicated so I answer a lot of the most common questions like when can they be exercised, cash vs cashless, the redemption price etc!

CASHLESS REDEMPTION FORMULA:
X = Y(a-b) / a  
X = shares received
Y = Number of warrants
A = Avg price
B = redeemable price (11.50)

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⭕ Disclosure: I invest in SPACs and have long or short positions on some of these stocks. I am not a licensed financial advisor, CPA, attorney, etc. I do not know you or your personal situation. All investments involve some risk, and you should always consult with a licensed professional when in doubt. These videos represent my views and opinions only and should NOT under any circumstance be considered financial advice. I am simply chronicling my journey to financial independence and giving my thoughts on various investments and strategies. They may or may not be applicable to you.

[chriswright]

Note that many SPACs will not properly notify you of an early redemption. They must file an 8k with the SEC to indicate the redemption, but I have encountered several companies who have not issued press releases or sent out notifications to brokerage firms and have had warrants taken away for $0.01 per warrant. This happened with Fisker and Lordstown Motors. I would recommend that if you buy warrants that you sign up on a website that will send you notifications of a company's 8k filings so you can catch this. I have tried contacting the companies and they just tell me I am out of luck. In the case of Fisker, I filed a complaint with the SEC and they have intructed me to follow up with the courts. The S-1 filings indicate they will notify warrant holders of the early redemption but they often do not and claim their 8k filing is the "notification". Another example is Chargepoint (CHPT) which just filed their 8k this monday (6/7/2021) and there is nothing in the news about it. I contacted their Inverstor Relations department and their response was simply that they had filed the 8k, though they did say they sent out a letter to warrant holders on record which I have not recieved...yet, so I don't know if that is a bogus claim or not.

[bougiestyles]

I was so confused about warrants, you have explained in detail! Job well done.

[TonySkeelz]

Wow... I just learned so much from this video. Thank you so much for educating us!

[nareshprabhu]

Very informative. I will have to watch this few more times to digest it completely. Thank you for making this.

[chefbperez]

These warrants run up great but it's been twice..the latest with Ride when they all of a sudden call them in way before the expectation date and you can end up loosing them all if your not paying attention.

[gunjanpatel]

Lol.. this vid showed up randomly in my feed today. How quickly things changed!?!? But this is a reminder that it doesn't take that long for the things to flip. Stay strong everyone!

[thomassim]

Thanks for your selfless sharing of knowledge. Like and subscribed.

[scoutpuff]

This was good thank you. Clear and concise.

[khowardx]

Excellent video. Very easy to understand. Thank you!

[jackkung]

Great lesson on warrants, thanks
Always wanted to start doing it but never knew where to begin

[SunnyGoklani]

Very helpful - not much discussed. Thanks.

[cmfanz]

Patrick, this video is the best gem I have ever found on warrants. Thank you for sharing your knowledge and providing a step by step approach on learning how warrants work. Appreciate your phenomenal work and distilling things down in a way that beginners can grasp with relative ease.

[daniellebersch]

Exactly what I was looking for. Thanks for explaining so clearly.

[peterp]

Out of all the videos I've watched, this one was the one that made sense. Why? Because you used examples and weren't reading verbatim from a slide show. Thank you for the video.

[melbsurf]

Thank You! Got my THCB warrants, and now I know how it works!

[mmmathieup]

Merci Patrick! Je vais essayer d'acheter des « warrants » pour NGA (Lion électrique), très claires tes explications!

[bihmthethird]

How do you create a SPAC? Where do you go to get one?

[hunnygirdhar]

This is beautifully explained. can you please make a video on Make a whole table provisions

[hyunjean]

Appreciate you defining each item and not assuming people know every finance term (which can be very confusing and not intuitive). Clear example is the way you've simplified the definition for Leverage. The practical examples where you go to sec.gov and yahoo finance is also incredibly helpful. It's not just an academic exercise but you make it real!

[Luna]

Can you please make a video using CCIV as an example?