blakenew

quote:

---

Anyone bought in yet while it is trading under LCA?

---

Lots of people have. People are expecting LCA to increase in value in a couple days when the merger is publicly announced. I think the sharenames will convert to WATRH or something similar.

quote:

---

Basically if it trades above $18 for a certain time they can force you to convert the warrants into common stock. Sometimes on a cash basis sometimes on a stock basis.

---

How do they force you to convert?

Excuse the wall of text..

I noticed this on
LINK

quote:

---

We may redeem your unexpired warrants prior to their exercise at a time that is disadvantageous to our public stockholders, thereby making their warrants worthless.


We have the ability to redeem outstanding warrants at any time after they become exercisable and prior to their expiration, at a price of $0.01 per warrant, provided that the closing price of our Class A common stock equals or exceeds $18.00 per share for any 20 trading days within a 30 trading-day period ending on the third trading day prior to proper notice of such redemption provided that on the date we give notice of redemption. If and when the warrants become redeemable by us, we may exercise our redemption right even if the issuance of shares of Class A common stock upon exercise of the warrants is not exempt from registration or qualification under applicable state blue sky laws and we are unable to effect such registration or qualification, subject to our obligation in such case to use our best efforts to register or qualify the shares of Class A common stock under the blue sky laws of the state of residence in those states in which the warrants were initially offered by us in the public offering. Redemption of the outstanding warrants could force our public stockholders (i) to exercise their warrants and pay the exercise price therefor at a time when it may be disadvantageous for them to do so, (ii) to sell their warrants at the then-current market price when they might otherwise wish to hold their warrants or (iii) to accept the nominal redemption price which, at the time the outstanding warrants are called for redemption, is likely to be substantially less than the market value of their warrants. None of the Sponsor Warrants will be redeemable by us so long as they are held by their initial purchasers or their permitted transferees.

---

Can someone explain this roughly? Does this mean that the most my warrant (50% of the stock for 5.75) will be worth is half of the $18.00 maximum, or $9?

So I'm paying $1.40 (LCAHW price) for the chance to pay $5.75 for a half share of LCA which can't go above $18?

So I could never exercise my warrants when LCA is $40 or $50?

I really think this company is going to do well. I'm trying to position myself intelligently.