How will the pricing of the warrants be determined once they trade separately under the symbol PACHW?

Pricing mechanics for PACHW

When the units split, each warrant will become a stand‑alone security that is priced by the market, not by the company. The fair‑value of a PACHW warrant will be anchored to the price of the underlying Class A share (PACH) and the terms of the warrant (exercise price, expiration date, any conversion ratio). In practice market makers will price the warrant using standard option‑pricing logic (e.g., Black‑Scholes or binomial models) that incorporates:

• Underlying price – the current market price of PACH;
  
• Strike/Exercise price – the fixed price at which the warrant can be exercised (usually $10 or the IPO price for many SPAC warrants);
  
• Time to expiration – the longer the remaining life, the higher the premium;
  
• Implied volatility – derived from recent price swings in both the SPAC share and comparable SPAC warrants; and
  
• Supply‑demand dynamics – because no fractional warrants are issued, only whole‑warrant liquidity will appear, potentially creating a tighter supply that can push the warrant price above the theoretical value when demand spikes (e.g., after a merger announcement).

Trading implications

Expect the initial PACHW price to settle near the theoretical value derived from the current PACH price minus the exercise price, adjusted for time value and volatility. Traders can look for “conversion arbitrage”: when the combined market value of one PACH share plus its corresponding PACHW warrant deviates materially from the original unit price (PACHU), a trade can be executed by buying the under‑priced side and selling the over‑priced side. In the short term, watch the bid‑ask spread on PACHW—wide spreads are typical immediately after separation and can create quick‑trade opportunities. Monitor the underlying share’s technical support/resistance levels; a breakout in PACH often triggers a parallel move in the warrants, but with amplified volatility because of the leverage embedded in the warrant. Use the pricing relationship to set entry/exit levels and hedge any exposure between the equity and the warrant position.