The move would issue 1,573,995 shares to warrantholders should all accept the offer. The company also aims to amend the company’s warrant agreement to require that all remaining warrants at the close of the offer be automatically converted to 0.18 shares at midnight on August 18. This represents a lesser value than if you tendered at 0.20 shares. However, in order to amend the warrant agreement, PWP will need 65% of outstanding warrants to vote in favor of the change and representatives of 45.9% of warrants have already indicated their approval. As a result, PWP only needs 19.1% of additional warrantholders to vote in favor.
The value in the offer should be fairly clear to warrantholders. Perella Weinberg’s 7,869,975 outstanding warrants outstanding closed yesterday trading at $0.7998 and company shares closed Thursday at $6.61. Therefore, gaining 0.2 shares each would net the holder about $1.322 per warrant. At the time of writing this, the warrant price has since jumped to $1.30.
Perella Weinberg closed its combination with FinTech IV in June 2021. It is a global M&A advisory firm that reported $151.9 million in revenue in the first quarter of 2022 for $20.5 million in adjusted net income.