Rights, Warrants, Tender Offers, and CVRs

What are Rights?

Rights are short-term privileges granted to existing shareholders that allow them to purchase additional shares at a discounted price.

• Rights are typically issued as part of a rights offering.
• They are short-lived and rarely traded.
• Once they expire, they can no longer be exercised.

What are Warrants?

Warrants are long-term securities that give holders the right to purchase stock at a fixed price. They are commonly issued through corporate actions such as financings or restructurings. Unlike rights, warrants are tradable in the market.

Note: Warrants cannot be purchased through our platform; they can only be liquidated.

What are the requirements to sell warrants I received?

• Orders must be placed as limit orders.
• Orders must be placed during regular market hours.
• The Trading Hours setting must be Regular Hours Only. Orders set to Overnight or Include Extended Hours will not go through.

What is a Tender Offer?

A tender offer is a public proposal made by a company or investor to purchase shares directly from shareholders.

• Tender offers are usually made at a premium to the market price.
• They are often used to gain ownership or control of a company.
• Participation is voluntary, and shareholders can choose whether to tender (sell) their shares.

What are CVRs (Contingent Value Rights)?

Contingent Value Rights (CVRs) are issued during mergers or acquisitions and give holders the right to additional future compensation if certain conditions are met.

• These conditions may include regulatory approvals or performance milestones.
• If the conditions are not met, the CVRs may expire worthless.
• Holders must wait for an official company announcement to determine any pending or future value of the CVR.

If you have questions or encounter any issues with rights, warrants, tender offers, or CVRs, please reach out through our in-app Help Center or email support@webull.com.