Warrant (Penny Warrant Form) | Practical Law
A penny warrant to be used in connection with the financing of a private company, including 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 a nominal exercise price. It is drafted in favor of the investor, but aims to be reasonable and includes provisions commonly included in many warrants. This Standard Document has integrated notes with important explanations and drafting and negotiating tips.