SoFi has become a popular one-stop shop for all your banking and investment needs. Before the merger investors even had the option to buy stock warrants that when exercised would buy SoFi shares at $11.50. But exactly do SoFi warrants work and when do they expire?
SoFi warrants expired on December 6, 2021, at 5:00 pm ET. All SoFi warrants have since become void and are no longer exercisable. Holders of non-exercised warrants can now redeem SoFi warrants for $0.10 each.
In this blog post, we’ll discuss whether warrants, in general, have maturity dates and what happens to warrants they expire. I’ll also cover when and how you can or could have exercised your SoFi warrants and what happened to those warrants after expiration.
Do warrants have a maturity date?
Typically, all warrants also have a maturity date. This date indicates the deadline for exercising the warrant. In most cases, this maturity date will extend a couple of years into the future – as opposed to stock options where the maturity date commonly is less than one year.
Stock warrants can thus be thought of as stock options with a longer time to maturity.
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What happens to warrants when they expire?
When warrants expire they are no longer exercisable, i.e. they cannot be redeemed for the underlying stock. Warrants that are expired are called void warrants and can be only traded in at the redemption price which is set by the issuing company.
Now, that we have a basic understanding of how warrants work and when they expire let’s look at SoFi warrants specifically!
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When can I exercise my SoFi warrants?
SoFi warrants could have been exercised until December 6, 2021. At the time of issuance, the warrants were set to be exercisable on the later of (a) 30 days after the completion of a merger and (b) 12 months from the closing of the SPAC’s listing.
SoFi could have also called in the warrants for early redemption in which you would have been able to redeem your SoFi warrants before the expiration date.
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What happened to my SoFi warrants?
Since not all brokers treat warrants equally, you may have had some problems tracking what exactly happened to your SoFi warrants. In order to understand where your SoFi warrants went let’s look at the two options you have:
- You exercised your SoFi warrants before December 6, 2021: If you chose to exercise your warrants they will be redeemed for the underlying stock at a price of $11.50 per share. The warrants will be traded in and the shares will be credited to your brokerage account.
- You did not exercise your SoFi warrants: If you failed to exercise your warrants before maturity they will have become void by now. This means that they are no longer exercisable and cannot be redeemed for the underlying stock.
In the second case, you may still see the SoFi warrants in your brokerage account, however, the only option you will have is to trade them in at the redemption price set by SoFi of $0.10 per warrant.
In any case, you should have received a notification from your broker regarding the expiration date of your SoFi warrants. While it’s ultimately your responsibility to track the maturity date of your warrants, a good broker will be of valuable assistance in educating and reminding their customers with regard to stock warrants.
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On December 6, 2021, at 5 PM Eastern Time all SoFi warrants expired. They are now no longer exercisable and cannot be redeemed for SoFi stock. After the expiration date, SoFi warrants can be traded in for $0.10 each (warrant redemption price).
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