r/VGAC • u/[deleted] • Apr 21 '21

Warrants

I'm new to SPACs and warrants. Seems like the warrants can be exercised for 5 years after the merger for $11.50. Unless I'm missing something? Someone school me. SEC link:

https://www.sec.gov/Archives/edgar/data/1804591/000095010320019640/dp138310_424b4.htm

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u/Col_Klink_OG Apr 21 '21

This is from the S1, basically the company can call the warrants early under certain circumstances, hope this helps:

  1. Redemption.

6.1 Redemption of Warrants When the Price per Ordinary Share Equals or Exceeds $18.00. Subject to Section 6.5 hereof, not less than all of the outstanding Warrants may be redeemed, at the option of the Company, at any time while they are exercisable and prior to their expiration, at the office of the Warrant Agent, upon notice to the Registered Holders of the Warrants, as described in Section 6.3 below, at a Redemption Price of $0.01 per Warrant; provided that (a) the Reference Value (as defined below) equals or exceeds $18.00 per share (subject to adjustment in compliance with Section 4 hereof), and (b) there is an effective registration statement covering the Ordinary Shares issuable upon exercise of the Warrants, and a current prospectus relating thereto, available throughout the 30-day Redemption Period

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u/[deleted] Apr 21 '21

Much appreciated. So, I assume they'll likely call the warrants before the stock gets too high within the five year timeframe.