Share warrant

Exercising a share warrant generally provides cash to the company and leads to new shares, potentially diluting existing holders. Warrants can be issued with debt to make the financing package attractive, and may be detachable depending on their terms. They differ from a traded option between investors that usually transfers existing shares rather than raising company cash. Value depends on the exercise price, share value, expiry and other terms. A warrant need not be exercised if the market price makes subscription unattractive.