How to Select Anti-dilution When Issuing Warrants?

Anti-dilution can be chosen when issuing warrants to shareholders. Rather than issuing a certain number of warrants, a fixed percentage of company ownership is given.

Here are the steps to follow:

Step 1: Log into your Eqvista account and choose the company account. 

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

Note: You can select the anti-dilution option when issuing equities and options. Check out the support articles to learn how to select the option when issuing equities and options. 

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

Note: On this page, click “Create New Class” to create a warrant class and if one is created, 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 “Issue Grants”.

Step 3: You will be redirected to the next page to select the warrant class again from the list available.

Once you select the warrant class, a button will appear that says “Add New Grant” and click on this.

Step 4: Then, you will be redirected to the next page where you need to look for the shareholder’s profile to whom you want to issue the warrants.

Here, you can search for a shareholder or add a shareholder from here directly.

Note: The shareholder profile must already be created. Check out the support article to create a shareholder. You can click “Add New Shareholder” if you do not have one.

In this case, we already have the shareholder profile and type in the name of the shareholder in the search field. The name will appear on the right with a “Select” button. Click on this.

Step 5: Once you click, you will be redirected to the next page to begin the process of issuing warrants. Fill in the details including the exercise price, the date of issuance, the expiration period, and the warrant name.

For anti-dilution, you must tick the anti-dilution box and enter the fixed percentage. 

Note: If you have performed 409A valuation, you will see a notification below the Exercise Price displaying your current FMV and an option to “Edit FMV”.

A notification displaying your current FMV unknown and an option to “Add FMV” when you have not performed 409A valuation. 

To add, request, edit, and share the FMV, check out our support article here!

Add in the details and select if you need a vesting schedule or not. 

Note: You can implement a vesting schedule while issuing shares, options, and warrants. In addition to this, create your vesting plan or choose from six default plans. To know about vesting plans, check out the support article here!

In this case, select “No” for the vesting schedule.

Once done, click on “Submit”.

Note: If you want to issue shares from the same class to more than one shareholder,  click “Add New grant”. Then select the shareholder profile or add one and fill in the details.

Step 6: With this done, you will be redirected to the warrants page where you can see the issuance under the “Common Warrants” class. 

Then, click the grant name to view the warrant grant details. In this case, click the grant name “CW-003”.

If you want to further understand how to use the Eqvista application, check out our support articles or get in touch with us!