PSTH SPAC Warrants Explained Simply

Written by Donnie Nguyen

August 21, 2020

If you are looking to invest in the coming months, it might be a good idea to look at PSTH SPAC Warrants (Pershing Square Tontine Holdings run by Bill Ackman). The warrants have the symbol PSTH.WS. 

There are a few things that you should know about PSTH SPAC Warrants, as they do have quite a unique structure when compared to other SPACs. Let’s look at them.


These warrants are expected to be available around September 10, 52 days after the last S1 was filed. Once the separation happens, the units will no longer trade on the New York Stock Exchange. They will separate into Class A common stock and redeemable warrants. 

Warrant Specifications

When trading, it is imperative to understand the warrants per unit. For PSTH SPAC Warrants, this is set at 1/9. This means that each unit is one-ninth of one warrant. No fractional units are available, so units must be purchased in multiples of 9 to hold a warrant.

The earliest date that the warrants will become redeemable is 12 months from the date of the SPAC IPO – this was July 22, 2020. So the absolute earliest that the warrants will become exercisable is July 22, 2021. It also has to be 30 days after the completion of a merger, so do bear that in mind!


The exercise price is $23. This means that once exercisable, each warrant will give you the right to buy one share of PSTH at $23 per share in the future, until the warrants expire. Warrant expiration can vary for different SPAC warrants. For PSTH, it is five years after a completed merger, which is fairly common among SPACs. However, there are some exceptions…

When do the warrants expire? 

It’s crucial not to let warrants expire if they are in the money or have any value at all. PSTH SPAC warrants can expire in a few ways. The first is, like other SPACs, if the SPAC terminates before a merger. The next two terms are unique to PSTH SPAC warrants. 

  • If the shares trade $36 or more for 20 out of 30 trading days, the warrants can be redeemed by management.
  • If the price per share equals or exceeds $20 for 20 out of 30 trading days, management could also redeem it.

The $36 clause is only unique to PSTH because its SPAC is double the price of other SPACs, which are normally priced at $10. Those $10 SPACs have a similar clause for $18 instead of $36.

The $20 redemption clause is truly unique to PSTH as I haven’t seen it in other SPACs before. I don’t explain it in my video well, so let me try to explain it better here. If management decides to redeem warrants after the shares equal or exceed $20 for 20 out of 30 trading days, there is a “cashless basis” table in the S1 filing under the section “Redemption of warrants when the price per share of Class A common stock equals or exceeds $20.00”. This table should give investors a good idea of how much their warrants will be worth if management decides to invoke this clause.

If you let the warrants expire, then they will pretty much become worthless ($0.01 in the $36 redemption and $0.10 in the $20 redemption). This means that it is crucial to keep an eye on warrants and make sure that you know when they expire.


In both of the above cases ($36 and $20), management will issue a 30-day notice, so warrant holders will have 30 days to make a decision before they expire. From what I’ve seen in the past, these notices are also posted on the post-merger company’s website.

If the warrants do not get redeemed early, they will expire five years after completing the merger. 

Even if you’ve lost money on the warrants, selling them for cash or redeeming them for shares should be better than letting them expire worthless.

Are you thinking of buying?

I’ve put together a price prediction to help you out. I considered Social Capital Hedosophia Holdings Corp. III (NYSE: IPOC),  a similarly popular SPAC run by Chamath Palihapitiya. The IPOC warrants (NYSE: IPOC WS) have traded between $2.50 – $4. Because PSTH is twice the price of IPOC, I think that PSTH warrants will trade between $5-$8 per warrant. This means that I would try to buy for under $6 per warrant to get in cheap.

I hope that this post has helped you feel a bit more prepared about PSTH SPAC warrants! Happy trading!



  • Pay attention to when your warrants expire
  • Make sure they don’t expire worthless if you can sell or redeem them
  • See my price prediction for where these warrants will trade

VIDEO CORRECTION AT 06:29: You don’t need to let a warrant expire worthless if it’s out-of-the-money. You can still choose to sell it at market value if you desire.

DISCLAIMER: I'm not a financial advisor. These are my opinions and provided "as-is". It is not an offer to buy or sell securities. Read the Terms and Conditions.

If you’re brand new to SPAC stock warrants, watch this SPAC Warrants Basics for Beginners video now!

What do you think about PSTH warrants? Leave me a comment below. Thanks for stopping by.


I/we own shares of PSTH.U


Except for Wolves of Investing, I/we are not receiving any compensation from and do not have any business dealings with any companies whose stocks are discussed in this article.

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1 month ago

I don’t understand the $20 for 30 days management option. If they complete a merger 10 months after IPO and price stays above 20 then I get $0.10 per warrant cause I can not exercise my option till 12 months after IPO? Hopefully I’ve got something wrong.

Donnie Nguyen

Donnie Nguyen

Donnie Nguyen is the founder and CEO of Wolves of Investing. He started investing in the stock market in the early 2000s. He follows the teachings of Peter Lynch, Warren Buffett, and other investing legends. When he's not investing or blogging, he loves spending time with his family traveling and experiencing the world.

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