A quick primer/thread on SPAC warrants, because there are a lot of new SPAC traders/investors, and warrants are a great, leveraged way to play them. However, there are some assumptions out there that are not quite right.
cc: @RetroWallSt https://twitter.com/The_Hailestorm/status/1359558379367239688

1. Warrants frequently trade well below their imputed value. That is NOT a reason, in and of itself to buy the warrant.

2. Warrants are not really exercisable/redeemable for 5 years. The Prospectus will set forth the rules, and it will favor the company. Here is a link to the prospectus for $CMLF: https://sec.report/Document/0001213900-20-023960/#ea126102ex4-4_cmlifesci.htm

3. Unfortunately, the Prospectus is not paginated, but if you scroll down, you will see a section entitled "3. Terms and Exercise of Warrants."

4. If you want to understand what you are buying, you need to read this portion of the prospectus. It contains important info re: the company's rights (ie: cashless redemption vs. $11.50 cash redemption, at what stock price can the company redeem, etc.)

5. You also will see that the warrants will EXPIRE in 5 years, but the company can redeem them before then. Therefore, warrants do not provide the time value that, say, a LEAP does.

6. You can get great leverage with warrants, but please understand that they do NOT trade or act like options, especially early on. They do not trade at imputed value.

7. A lot of time was spent last summer/fall doing math to calculate which SPAC warrants were trading at a supposed "discount." That was really a waste of time, because...

8. they do not trade at an 'imputed value' until they ARE exercisable, at which time they will start to trade in lock-step with the common. See $DM, for instance. Those warrants JUST became exercisable, and the warrants are now trading within 2 cents of their implied value.