Quote:
Originally Posted by Leondros
I was reading the S4 release for AMCI and can't make heads or tails in terms of why the warrants are so undervalued. This excerpt gives me pause however:
Reading it it sounds like some registration needs to happen or these could be worthless? I haven't read too many merger agreements so its hard to make heads or tails of this.
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I answered my own question - looks through Clover's S4 and its the exact same wording. I just don't understand the disconnect between the SP and the Warrant price then. I guess its the associated risk of a deal not closing and the SPAC effectively becoming worthless. The first merger that fell through on AMCI took a lot of their cash and if this deal were to fall through there would be even less cash. Atleast the shares would be entitled to some assets whereas the warrants intrinsic value goes to 0.