r/SPACs - A Beginners FAQ Guide to SPAC Warrants

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• Optional redemption usually opens about 30 days after merger.

• Your $2000 investment became worth ~$8500.

• At $20 common - $11.50 strike price, your warrant is intrinsically worth $8.50 each.

• Warrants are far more volatile than the shares, but are also more likely to double or triple in value than commons.

• Your $2000 became $3640

• The downside is if the merger falls through and the SPAC liquidates, warrant investors lose everything. $0.

• Most are 1:1, followed by 2:1. There may occasionally be a 4:3,

• In theory you have up to five years to exercise your warrants. In practice, most SPACs have early redemption clauses to where if the stock holds above a certain price for a certain number of days