Warrant (General Form) | Practical Law
A general warrant to be used in connection with the financing of a private company, such as a private equity or venture capital transaction. This agreement sets out the terms and conditions for the warrant holder's right to purchase, for a set exercise period, a specific number of equity securities of an issuer for an exercise price based on the fair market value of the equity securities at the time the warrant is issued. It is drafted in favor of the investor, but is intended to be reasonable and includes common provisions included in many warrants. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.