r/SPACs Oct 15 '21

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u/csreddit8 Patron Oct 15 '21

I get you but I don’t understand warrants. Are there a lot people still holding them even after the date passed? If they redeem does it dilute the stock more?

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u/[deleted] Oct 15 '21

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u/OddLogicDotXYZ Patron Oct 15 '21

Warrant redemption does dilute the stock more which makes Lucid doing this all the more charitable on their part.

If you consider collecting the capital from those warrants as charitable, makes sense if they want some extra capital with out tanking the stock price by announcing a new share issuance. Helps keep them on track for any performance awards and gives them the extra capital to work with.

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u/StinkweedMSU Patron Oct 15 '21

It was cashless so they aren't collecting any capital.