DRS? Warrants Issuance ARTICLE 2 – Part 1
Sup friends? Warrant delivery day is almost here, and weeeeeeoooooo this is exciting!
Now that the formal documentation has dropped (https://www.sec.gov/Archives/edgar/data/1326380/000132638025000084/projectgenesis-ex41xwarran.htm) I wanted to make sure everyone understood Article 2:
FORM OF WARRANT; BENEFICIAL INTERESTS
This is all about ownership, and it may be the most important thing to know up front.
KEY DEFINITIONS:
Depositary - The Depository Trust Company, its nominees, and their respective successors (this comes up a lot so pay attention to this one throughout)
Warrant Agent - Computershare Inc., a Delaware corporation (“Computershare”), and its affiliate, Computershare Trust Company, N.A., a federally chartered trust company
First, ownership. When it comes to the equity side:
[blah blah…truncated because this post is about the equity-side only]
And when it comes to those registered holders, for those not in DRS, they get what’s called global warrants:
…which is a fancy way of saying “for you and your members, DTC,” which Computershare will keep track of in one lump sum:
This means that Computershare (as Warrant Agent) keeps a record of everything, and on the equity side it’s one of two things:
1. Shares registered to an individual in DRS
2. The Depositary
Oh, and to boot, this specifically calls out that brokers have zero sway here:
Translation: If it’s not registered in your name, not only do you not own it, but your broker does not either; your broker has zero rights when it comes to the warrants. The DTC has all the power and authority.
This explains why there are all the issues with brokers talking about cash in lieu of a dividend, and it needs to be CRYSTAL CLEAR that this is NOT an issue that Computershare (or GameStop) is going to tangle with, so they actually included it within:
IF ANY BROKER WANTS TO GIVE YOU CASH IN LIEU, THAT IS AN ISSUE WITH THE DTC, NOT WITH COMPUTERSHARE OR A SPECIFIC BROKER, AND IT IS 100% LEGAL.
DTC. MAKES. THE. RULES.
So if you’re feeling some kind of way about a “mishandling” or warrant dividends…don’t be. This will be handled perfectly legally.
…it just sucks if you are not the registered owner.
FORTUNATELY…
PART 2 is coming up to talk about what you CAN do about it, because section 2.04 is all about Transfer and Exchange, and this is where that WARRANT REGISTER I highlighted above is really going to shine.
Stay tuned.
TLDR: For those not in DRS, you do not have any rights/authority, and anything happening in this delivery that you think is “bad” is actually all normal. First, acknowledge that this is the case, and then arm yourself with the knowledge to make the most of your situation. DRS offers you the most power.
Posted Oct 6, 2025, 4:28 PM UTC