Warrant (General Form)

by Practical Law Corporate & Securities

A Standard Document providing a general form of warrant for use in connection with the financing a private company, such as in a private equity or venture capital transaction. This Standard Document outlines the key terms and conditions for a warrant holder's right to purchase a specified number of a company's equity securities during a set exercise period at a predetermined exercise price. It details procedures for exercising the warrant, including flexible payment options such as a cashless exercise, which allows the holder to acquire shares without an outlay of cash. This Standard Document also provides crucial protections for the warrant holder through various anti-dilution provisions designed to adjust the exercise price and number of shares in response to corporate events like stock splits, mergers, or subsequent equity issuances at a lower valuation. It also addresses compliance with US securities laws.