RE: RNS16 Sep 2022 12:12
A share warrant, also known as an equity warrant, essentially gives a shareholder the right to buy a company’s shares at a particular time in the future, at a price which is set in the present, known as the exercise price.
Most warrants have terms of between 2 and 10 years, depending on the nature and circumstances of the deal. Typically, the longer the term, the more valuable the warrant is, since it provides more opportunity for a significant payout if the company has a successful exit or the stock otherwise appreciates in value.