SilverKnightLV
4 years ago
No, that's not the terms of the warrants. I have held over 20 SPAC warrants post merger. Just started my DD here, but...
The most common early redemption clause is if the stock is trading at or above $18.00 for 20 out of 30 trading days. If the warrant is exercisable, management can issue a 30-day written notice and redeem those warrants early. Expired warrants get redeemed at $0.01 per warrant, so basically worthless. Redemption can be cash or cashless.
Typically, 30 days after merger, you can redeem warrants (sometimes a bit longer as shares need to registered).
The company can not violate their warrant terms as filed.
Sinvests
4 years ago
“Concurrently with the execution of the Agreement, Vector entered into subscription agreements (the “Subscription Agreements”) with certain investors (the “PIPE Investors”), pursuant to which the PIPE Investors agreed to subscribe for and purchase, and Vector agreed to issue and sell to such PIPE Investors, immediately prior to Closing, an aggregate of 46,700,000 shares of Pubco Common Stock for a purchase price of $10.00 per share, for aggregate gross proceeds of $467,000,000 (the “PIPE Financing”).”
https://sec.report/Document/0001213900-21-012372/?_gl=1*19sj87o*_ga*RGhFUU9DMGk3N2NZcmMxWDNYdi1kY1drMVg3M0dqd1ozSkNLd3htSm5tdGEtemNmVHlCTklwZm9EU0p4azlIcQ..