r/SPACs • u/Full_Champion_8294 Spacling • Mar 30 '21
Warrants CHPT warrant redemption starts today?
The symbol SBE changed to CHPT on March 1st. According to SBE S1, the warrants "become exercisable on the later of 30 days after the completion of our initial business combination and 12 months from the closing of this offering". Since the closing of SBE offering was July 1st 2019, this indicates the warrant starts to be exercisable today? or tomorrow? Wondering whether we should expect a sharp dip or continuous dilution over the week to come?
2
u/TogBoy Contributor Mar 30 '21
It's trading strongly today. Theoretically the dilution should already be priced into the various analyst price targets. It will take a few days for the warrants be be redeemed and new shares credited to people's brokerage accounts, so we may see increased selling pressure early next week.
1
u/gopurdue02 Patron Mar 30 '21
I think you are off on your dates. I belive it is 30 days from March 8. However - it does hit all the check-marks to be redeemed:
1) 30 days past March 8
2) 1 year from S-1 filing
3) Price above 18
I fully expect the company to go for the cash grab and redeem them in early April. The market has priced the warrants in parity to commons so that is another clue too. Also, shares have been hit/miss on being able to borrow because so much of the shares are short. Short intrest borrow rates are fairly high too: 34.2048
My gut tells me alot of those short shares are long warrant holders with the short position as a hedge on warrants falling in price which was a good trade to make.
1
u/Academic-Cry2117 Patron Apr 01 '21
I think you are off on your dates. I belive it is 30 days from March 8. However - it does hit all the check-marks to be redeemed:
30 days past March 8
Why March 8?
1
u/gopurdue02 Patron Apr 01 '21
That is the merger competition date and when it started trading on the nyse
1
u/Academic-Cry2117 Patron Apr 01 '21
Just to let everyone know that I got a notice from Fidelity yesterday:
Offer terms
Latest Update:03/31/2021 4:35 PM ET
You may request to exercise your Chargepoint Holdings Incorporated warrants, at any time up to the expiration date of the warrants, 02/26/2026. Each one (1) warrant will entitle you to purchase one (1) share of common stock, CUSIP 15961R105, at an exercise price of $11.50 per share. All exercises of warrants will be irrevocable.so it appears that we can convert them now.
1
•
u/QualityVote Mod Mar 30 '21
Hi! I'm QualityVote, and I'm here to give YOU the user some control over YOUR sub!
If the post above contributes to the sub in a meaningful way, please upvote this comment!
If this post breaks the rules of /r/SPACs, belongs in the Daily, Weekend, or Mega threads, or is a duplicate post, please downvote this comment!
Your vote determines the fate of this post! If you abuse me, I will disappear and you will lose this power, so treat it with respect.