Warrant Coverage

Warrant Coverage

A situation in which a company attaches to its stock a percentage of the dollar amount of one's investment in the form of more shares. For example, a person who buys 100 shares at $X per share may receive warrant coverage for a 10%of X, which allows the investor, if he/she desires, to buy 10 more shares at $X. A company may issue warrant coverage as a form of preemptive dilution protection: if it intends to issue more shares, it may issue warrant coverage to existing investors to protect their percentages of ownership up to a certain amount. It does not protect investors from downtrends in the stock, but does protect them from missing out on uptrends. See also: Cum warrant.
References in periodicals archive ?
Finally, it's that time of year when we take a step back and look around for new or emerging technologies that may warrant coverage m upcoming issues of Scientific Computing.
For example, in late September 2008 Warren Buffett received 100 percent warrant coverage when he purchased Goldman Sachs' preferred stock.
For these additional reasons, commercial real estate financing does not warrant coverage under the bill."
The company's securities counsel, Sichenzia Ross Friedman Ference LLP, has advised the company in connection with the Offering, which consists of units comprised of ten shares of common stock, at a per share price that represents a 10% discount to the average of the closing prices for the company's common stock for the five trading days preceding each subscription date, as quoted on the OTCBB, together with 30% warrant coverage with an exercise price that is 120% of the per share price for the common stock comprising the unit.
To warrant coverage, a defect or a dangerous condition in the named insured's product must actually cause the damage.
I just love that "The Colbert Report" and "The Daily Show" warrant coverage under your banner.
The auditor general needs some limited ability to select audits over the objections of senior leaders below the secretary and under secretary when he or she feels the risks warrant coverage. The under secretary has given the auditor general that ability.
CMS said in a "decision memo" issued on April 26 it made the decision after determining that the evidence of improved health outcomes in type I diabetic patients who receive pancreas-only transplants was sufficient to warrant coverage.
It covers such deal terms as anti-dilution protection, clawback provisions, next-round financing, cram-downs, overhang problems, warrant coverage and liquidation preferences, discussion of the Stock Purchase Agreement, and model documents, opinion letters and a due diligence checklist.
Certain conditions may warrant coverage for an unmarried dependent child age 22 or over who is incapable of self-support because of a mental or physical incapacity that existed before age 22.
These protocols are designed primarily to support non-repudiation, making use of certificates and CRLs, and are so tightly bound to PKI use that they warrant coverage under this working group.
Yet, what happens in state government is just not considered interesting enough by journalists to warrant coverage. The losers are not only the media, which are becoming increasingly out of touch about what is news and what is important, but also most citizens, who do not have any idea what is going on within a governmental body that affects every aspect of their lives.