Secondary Transactions – Exercising Warrants Into Equities

Warrants provide the holder the right to buy the shares of the company at a specific or exercise price. In many ways similar to options, warrants are issued by the company itself, not by a third party.

Eqvista allows you to exercise warrants into equities easily on its platform. 

Here are the steps to follow:

Step 1: Log into your Eqvista account and select your company account. 

On the dashboard, click on “Securities” on the left-hand side to get a drop-down menu. Then select “Warrants”. 

Step 2: Once you select, you will be redirected to the following page. 

Note: On this page, click on “Create New Class” to create a warrant class and if you have created one, you can issue warrants and implement a vesting schedule. 

Then, click the warrant class created, a panel will appear showing the details of those who have been issued warrants from this class.

In this case, we will click “Common Warrants” and select the grant “CW-002”.

Step 3: You will be redirected to the grant details page below.

Here, click on “Actions” and then from the drop-down menu, click on “Exercise to Equity”.

Step 4: By doing this, a new window will appear. The first step is deciding whether it will be a Partial Exercise or Exercise all warrants.

In this case, we have selected exercise all warrants and the equity class to where the shares would be given. Then, the exercise date and exercise grant name will be automatically filled. If the exercise date is not today, then you can edit it.

Note: You can also partially exercise the warrants issued to you by clicking “Partial Exercise”. Check out the support article to learn how to partially exercise warrants.

Once done, click on “Submit Exercise”.

Step 5: Then, you will be redirected to the equities page where click on the “Series A” equity class since the warrants were exercised in this class.

For more details on the grant, click on the grant name “Exer from CW-002”.

Step 6: Then, you will reach the page where you can now see the details of the grant.

Step 7: The record of the exercised grant can be seen by clicking “Cap Table” on the left-hand side to get a drop-down menu. Then, click on “Secondary Transactions” and you will see all the transactions – Exercises, Transfers, Note conversions, Repurchases, and Cancellations. 

On this page, click on “Exercises” to check if the grant is exercised.

For more information on Eqvista, check out our support articles or contact us today!