DRS? Warrants Issuance ARTICLE 2 – Part 2
Sup friends? This is part 2 of a dive into Article 2 of the Warrant Issuance doc. To catch up on the first part (all about ownership) go here first: https://www.reddit.com/r/Superstonk/comments/1nznvei/drs_warrants_issuance_article_2_part_1/
The formal documentation I reference can be found on the SEC website here: (https://www.sec.gov/Archives/edgar/data/1326380/000132638025000084/projectgenesis-ex41xwarran.htm) Again, all I want to do is make sure everyone understood Article 2.
In part 1, we reviewed how Computershare recognizes only two types of equity-side warrant holders:
- Individuals holding in DRS
- The DTC (AKA the Depositary)
What this means is that Computershare, as Warrant Agent, will only honor the exercise of warrants held by those groups (again, this is just on the equity side).
In other words: in order for a beneficial shareholder to receive a legitimate share, the DTC must exercise on behalf of their participant (the broker) on behalf of their client (the beneficial owner).
The beneficial owner has no rights/authority, and as it turns out, neither does the broker. So if you feel you’ve been wronged, take it up with the DTC because they’re the only ones who have any power in these circumstances. Don’t bother blaming your broker because they are just as powerless and everything they do is 100% legal since all they have to do is follow the rules of the DTC.
As a reminder, here is that section of the document:
In summary: no DRS, no guarantee of real shares.
Fortunately, there is a way to ensure it:
Section 2.04 - Transfer and Exchange
Let’s start with the basics:
Any transfers of warrants can and will be effected, or made official, directly through DRS…except for Global Warrants, which are managed by the Depositary. Managed by the Depositary. The Depositary.
What are Global Warrants again? Oh yea…those held at the DTC and that show up in brokerage accounts.
What’s on the opposite end of that spectrum? Definitive warrants:
In other words: a paper certificate. The DTC doesn’t have it and Computershare doesn’t have it. Why? Because it’s mounted on your wall, that’s why. Very few people actually have these, but it’s important to understand this concept because it comes up all over the place. Don’t worry though…there’s a nice little twist at the end.
First thing’s first - transfers are allowed and will work like this:
The DTC initiates the transfer and then Computershare takes note. Computershare will then create a new certificate and tear up the old one, so if the first one said Cede & Co on it, that would get torn up and the new one would say therealbigcheez. My name now.
To be clear, that also means that the DRS numbers will be updated:
How do I know that? Because Computershare only recognizes two types of holders:
- The Depositary (AKA, where you would transfer from) – holding Global Warrants
- DRS (AKA your personal account) – holding Definitive Warrants
Need more proof? Here you go:
Here’s more detail about the transfer of a Global Warrant (AKA brokerage warrant) to the beneficial shareholder (i.e. you, the household investor), in the name of such beneficial owner (AKA DRS).
Plus one for you, minus one for DTC. OFFICIALLY.
But I don’t want paper! I want the ability to hold everything in Computershare!
Oh yea…there’s this:
Book entry warrants. Boom. Ones you can execute whenever you please and you know with 100% certainty that what you’ll receive on the other end is a freshly-minted real share, in your name.
TLDR: You can transfer warrants to DRS, and when you do, Computershare officially updates their records to reflect that the DTC holds one less warrant for each one you just transferred. If there is an issue, your broker is lying to you, most likely on account of what they’re being told by the DTC. (And a reminder...neither Computershare nor GameStop are responsible for what the DTC does, so keep that in mind.)
Posted Oct 6, 2025, 7:16 PM UTC