Warrants after merger of SPACS?

I own $SBEA and they are listed with 1/3 warrants.

Can you please explaing how this whole thing works in the app?`
What happens after the merger tomorrow and the change of ticker to $BRCC

Haven’t checked recently, but I don’t believe warrants are supported in T212.

Hey. :wave:

@Zergui is right. We do not offer warrant type instruments on the platform. In case of such events, we sell the warrants and distribute the cash equivalent to eligible shareholders.

As for SilverBox Engaged Merger Corp I (SBEA), we’ll reflect the ticker change today. However, we have not received warrants from our intermediary yet. As usual, we’ll let you know if there is any news.

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Thanks for your quick reply. But I don’t need to hold them and can sell the common shares now?

@Bogi.H was describing our usual approach when it comes to similar events. However, we have no official confirmation that warrants would be due as a result of this particular merger. Would you mind sharing your information source?

“This is an initial public offering of our securities. Each unit has an offering price of $10.00 and consists of one share of our Class A common stock and one-third of one redeemable warrant.”


That’s the units. You own the common stock.

Units split into common stock and warrants a month or so after they IPO.

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@Scrooge_McCodf is likely to be right. What he mentions is the usual arrangement for a SPAC. In addition, T212 does not offer the units, they would have waited until they were separated into stocks and warrants and then offered the stocks.

I imagine that the stocks and the warrants currently trade separately and you only own the stock, not the warrant.

So you are saying on a different broker I would have got the 1/3 warrant, because I would have got the unit for 10USD instead just the common share? That was not displayed like this, if I remember correctly.

Well, not quite.
As I understand it, regardless of the broker, on the day you acquired the shares on T212 you would not have been able to purchase the combined units (shared+warrants) as they would have already been trading separately, as two different things.
What you could have done is bought them separately, but that would have cost you more money than what you invested, as the warrants would have also had a price (additional).

If you would have bought the units on a different broker EARLIER ie. before the separation, then yes. For example if you would have bought the units on the day of the IPO. But on the day of the IPO you wouldn´t have been able to buy it on T212.

Also, note that the 10USD a share was for whoever bought the IPO. I don´t know anything about the SPAC you refer to, but if you bought it in the market (no through the IPO) the price wouldn´t be 10USD but it would have been whatever the units traded at. Sometimes IPO prices rise rapidly upwards and you cannot actually buy at the IPO price in the market.


I don’t think so, no.

A common stock, warrant, and unit are three separate types of securities.

A unit is the combination of a common share + some part of a warrant. The unit will always trade at the price of the common share + the fraction of the warrant, or very close; there is no arbitrage possible there.

For your current situation, it sounds more likely that you were owning the common stock, and not the unit. If you were holding the unit, then you would receive the common stock + cash compensation for the equivalent amount of warrants from T212.


Thanks for you replies here!

I thought I was buying/trading the unit, if that was not the case then everythin @EquityInvestor and @Zergui replied might apply.

Maybe someone from T212 can maybe be so kind to clear, if the unit or the common share was traded. As I understood and from ticker listing it was displayed to me as a unit, e.g. on stocktwitts.

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Well I’ll answer because I know the answer.

Units trade with the ticker .U at the end of it (warrants .W). Trading 212 cannot handle units and warrants so has to wait for the day the units split into warrants and common stock to be able to list it.

The only thing you have in your account from the SPAC is common stock, which is not entitled to warrants when the units split (because they already have prior to your purchase.)