BRLSW

Borealis Foods Inc. Warrants represent the right to purchase shares of Borealis Foods common stock at a predetermined exercise price during a specified time period. These warrants were issued as part of financing transactions and provide holders with leveraged exposure to Borealis Foods' prospects in the plant-based, high-protein food market. The warrants trade separately from the common stock and appeal to investors seeking amplified participation in potential share price appreciation as the company grows its product portfolio and market presence. As derivative securities, these warrants' value derives from the underlying Borealis Foods common stock price. When the stock price rises above the warrant's exercise price, the warrants gain intrinsic value. Additionally, warrants possess time value based on the remaining exercise period and expected stock volatility. This leverage characteristic enables warrants to deliver larger percentage returns than the underlying stock during appreciation periods, though they also carry higher risk, potentially declining more sharply during downturns and expiring worthless if the stock price remains below the exercise price at expiration. Borealis Foods develops plant-based, high-protein pasta and food products targeting health-conscious consumers. The company's performance depends on product acceptance, achieving retail distribution, building brand recognition, scaling production, and competing effectively in the crowded plant-based food market. Positive developments such as securing major retail partnerships, expanding product lines, growing revenue, improving unit economics, or achieving profitability could drive stock price appreciation benefiting warrant holders. These instruments suit investors with higher risk tolerance who believe in the long-term growth potential of plant-based functional foods and Borealis Foods' ability to capture market share. However, warrant holders face risks including intense competition, execution challenges, the company's need to achieve sustainable profitability, and the time-limited nature of warrants creating finite investment horizons.