Virgin galactic warrants redemption
News came out that SPCE is liquidating their public warrants in a cashless transaction where the average Joe doesn’t have to pay to exercise but he only receives about 0.5 (half) of shares at $11.50 for the held amount of warrants.
Quick googling revealed, total shares 196mil, warrants 27mil. The numbers are likely a bit off but good enough for the rough estimate.
Warrants when exercised dilute the outstanding shares. 27mil warrants when exercised should increase the outstanding shares by 13.5mil (0.5 factor) which is about 6-7% increase.
All unexercised warrants will expire on April 13.
TLDR: SPCE drop will accelerate soon, easy 6-7% move on these news alone. Buy $10p one month out or a bunch of FDs if you feel spicy.
Disclaimer: Not a financial advise. YOLO responsibly.
Posted Mar 14, 2020, 8:21 AM UTC · edited