I am trying to figure out how equity warrants work.
Talkspace ($TALK) is up 90% YOY, while it's equity warrants ($TALKW) expiring in June 2025 are down 55% YOY.
I checked the prospectus from the SEC from when they were issued, and there's a few differing figures for the exercise price, so idk which is correct, or if it's even a fixed quantity.
$11.50 seems to be the exercise price most generally mentioned (stock price is at $1.95), so (assuming this is the true exercise price and it is fixed) does that explain why the warrants are down even though the underlying is up? Obviously I understand why the underlying can go up without the option following, but there is quite a disparity here, with the common stock being up 225% YTD.
In other words, the company financials seem to be improving, driving the stock up, but not improving enough to think the warrants will ever be in the money before expiry?
SEC prospectus: https://www.sec.gov/Archives/edgar/data/1803901/000119312521207764/d40293ds1.htm
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