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Funding instruments & exemptions · Working

Warrant

Also called: stock warrant

ELI5

A right to buy company shares later at a set price.

Used in conversation

“The lender receives warrant coverage with the loan.”

Definition

A security or contractual right to purchase shares at a specified price under stated conditions.

Here “Warrant” means: A security or contractual right to purchase shares at a specified price under stated conditions.

Pitch context

You will see “Warrant” in fundraising decks, data rooms, term sheets and investor conversations when the discussion reaches funding instruments & exemptions.

Why it matters: In funding instruments & exemptions, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

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Sources & evidence · 5

Direct term-level sources and supporting source families.