Potential Dilution Risk from Webull’s Expiring Warrants
Webull has announced that its incentive warrants (NASDAQ: BULLZ) will be redeemed on June 30, 2025. Holders must exercise their warrants by 5:00 p.m. ET on that date — or they will receive only $0.01 per warrant.
How Many Warrants Are Affected?
-Total BULLZ Warrants Outstanding: 20,913,089
-Exercise Price: $10.00 per warrant
-If all warrants are exercised, Webull will issue 20.91 million new shares
Capital Raised if Fully Exercised
If all 20.91 million warrants are exercised:
-Webull will receive $209.13 million in cash
-Total shares outstanding would increase by ~17.3% (from 100M to \~121M shares)
-This creates dilution of ownership and earnings per share for existing shareholders
Will This Cause a Drop in Webull’s Stock Price?
Possibly — but not necessarily. Downward Pressure Factors:
-More shares = dilution, which often triggers a short-term price drop
-Traders may anticipate dilution and sell preemptively
Supportive Factors:
-Webull could raise over $200 million, strengthening its balance sheet
-If investors believe the capital will be used productively, the dilution may be offset by growth expectations
-Not all warrants may be exercised many holders might miss the deadline or find the current share price unattractive
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Webull has announced that its incentive warrants (NASDAQ: BULLZ) will be redeemed on June 30, 2025. Holders must exercise their warrants by 5:00 p.m. ET on that date — or they will receive only $0.01 per warrant.
How Many Warrants Are Affected?
-Total BULLZ Warrants Outstanding: 20,913,089
-Exercise Price: $10.00 per warrant
-If all warrants are exercised, Webull will issue 20.91 million new shares
Capital Raised if Fully Exercised
If all 20.91 million warrants are exercised:
-Webull will receive $209.13 million in cash
-Total shares outstanding would increase by ~17.3% (from 100M to \~121M shares)
-This creates dilution of ownership and earnings per share for existing shareholders
Will This Cause a Drop in Webull’s Stock Price?
Possibly — but not necessarily. Downward Pressure Factors:
-More shares = dilution, which often triggers a short-term price drop
-Traders may anticipate dilution and sell preemptively
Supportive Factors:
-Webull could raise over $200 million, strengthening its balance sheet
-If investors believe the capital will be used productively, the dilution may be offset by growth expectations
-Not all warrants may be exercised many holders might miss the deadline or find the current share price unattractive
-Disclaimer: This analysis is for informational and educational purposes only and does not constitute financial advice, investment recommendation, or an offer to buy or sell any securities. Stock prices, valuations, and performance metrics are subject to change and may be outdated. Always conduct your own due diligence and consult with a licensed financial advisor before making investment decisions. The information presented may contain inaccuracies and should not be solely relied upon for financial decisions. I am not personally liable for your own losses, this is not financial advise.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.