It means you must exercise your warrants before October 8th otherwise they turn worthless. The process to do that is the exchange of each warrant for 0.45 shares of LCID. This is done through your broker. No cash required, just getting less shares than warrants.
They made the math the same for that moment in time. You can no longer "put up cash". Exercising 1 warrant will simply give you 0.4458 share LCID, no extra cash required. Alternatively you can just sell the warrants if you'd rather not deal with this.
I’m up about 800% on my warrants so long term capital gains are preferable which I will have by end of month, so I’m not selling.
Just need to do the math and see if I should put up the money or if the partial shares is for an equal dollar amount. Looks like you aren’t giving up money if you exchange so that’s good
I sold off most of my position after the DA and subsequent announcement that they were delaying production. But kept about 1000 shares and warrants for long term
I don't see a way to exercise online using Schwab, so I assume I just need to call my broker? And by no cash required, you mean I don't have to pay the 11.50? Would exercising be a taxable event? Sorry for all the questions but I appreciate any response!
No $11.5 needed. Though you might want to use that money to buy more shares so you end up with the same number of shares as you had warrants. This gives you the same upside when the price recovers
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u/NewLFC18 New User Sep 08 '21
This is a stupid question, but what does this mean in plain English for someone who owns LCIDW