In my previous post on WLAC – Boostrun and Investing in the Unknown and Unknowable, I introduced the framework for looking at situations where the probability-weighted outcomes are highly asymmetric. Boostrun’s merger with Willow Lane (WLAC) provides this type of setup, and nowhere is that more evident than in the comparison between the common shares (WLAC) and the publicly traded warrants (WLACW).

Why the Warrants Matter

Each WLACW warrant entitles the holder to purchase one share at an $11.50 strike price. The warrants are callable if the stock trades above $18, at which point holders can choose a cashless exercise — receiving a fractional share equal to the value of the warrant. This cashless exercise ensures that warrant holders don’t have to put up money to buy the shares @ 11.50 – they simply get their intrinsic value delivered as stock.

The Payoff Dynamics – Lets Play With A Mega Bull Case

• Common Shares: Buying WLAC stock at ~$11.61 and holding until $50 yields a gain of ~$38.39, or about 331%.
• Warrants: Buying WLACW at ~$2.82, assuming an early redemption call at $18 and taking the cashless conversion option results in holding ~0.361 shares per warrant. At a $50 stock price, each warrant would have yielded $18.06 in return. That’s a gain of ~$15.24, or about 540%.

Hence, even if the company calls the warrants at the earliest possible opportunity, the leverage embedded in WLACW provides nearly 2x the return of the common stock in a bullish scenario.

The Sensitivity to Redemption Timing

• At $18.50 redemption: WLACW yields ~571% returns vs. 331% for the stock.
• At $20 redemption: WLACW yields ~620% returns vs. 331% for the stock.
• At $25 redemption: WLACW yields ~674% returns vs. 331% for the stock.

The takeaway: the sooner the call, the lower the fraction of shares you receive — but even at the minimum ($18), the warrant still significantly outpaces the stock on return.

The Asymmetry

In a bullish case where Boostrun executes, scales, and achieves higher valuations, WLACW offers a leveraged way to participate. The trade-off is obvious: common shares are safer, as the trust value protects the downside pre-close and 2) the common shares do not have an expiry date. As well, warrants, however, introduce more volatility to the equation. But if you believe in the bullish trajectory, the extra return is substantial.

The Downside Case

It’s important to stress the risks:

• Commons (WLAC): If the de-SPAC transaction fails and the SPAC liquidates, shareholders are entitled to their pro-rata portion of the trust account — currently about $10.30/share. At an entry around $11.61, that implies a modest loss (~11%).
• Warrants (WLACW): In contrast, warrants have no claim on the trust. If the deal does not close, WLACW could expire worthless. At an entry price of $2.82, that’s a 100% loss.

This creates a very different risk profile: the stock carries a trust floor, while the warrants are binary. They either generate outsized returns in a successful de-SPAC and bullish trajectory, or they could go to zero if the deal collapses.

Closing Thought

Warrants are often misunderstood as capped instruments. In reality, with cashless conversion mechanics, they are just accelerated claims on upside. In the case of Boostrun, the warrants may represent the most mispriced way to express a bullish view. For investors with the tolerance for volatility and strategic uncertainty, WLACW is not just an add-on, but potentially the most compelling piece of the structure — provided one acknowledges the risk of a total loss if the transaction fails.

Disclosure  –  The Author owns and is acquiring WLAC shares and WLACW warrants at the date of this blogpost. The Author is not compensated in any way by WLAC or Boostrun and has no commercial or financial relationship with the company except as an investor. Readers are required to do there own due diligence and not rely on any aspect of this blogpost for advice.