Hi David,
I really need your help is understanding,I was trying to figure out by myself but with no success unfortunately:
when a company issues warrants to employees, it gives the employee the right to purchase shares @ a specific strike price.
When the employee exercised, basically the company increased its equity by this amount.
The employee doesn't pay any premium for this warrant,
1. what is it exactly the warrant issue cost, who pays for it?
2.In respect to the delusion -The company basically increased its equity by the number of warrants multiplied by the strike price(lets assume that 1 warrant=1 share) and the delusion is the outcome of reduction in shares holding percentage for the existing investors. can you please explained the notion behinf the calculation of the warrant dilusion
Thanks a lot,
Orit
I really need your help is understanding,I was trying to figure out by myself but with no success unfortunately:
when a company issues warrants to employees, it gives the employee the right to purchase shares @ a specific strike price.
When the employee exercised, basically the company increased its equity by this amount.
The employee doesn't pay any premium for this warrant,
1. what is it exactly the warrant issue cost, who pays for it?
2.In respect to the delusion -The company basically increased its equity by the number of warrants multiplied by the strike price(lets assume that 1 warrant=1 share) and the delusion is the outcome of reduction in shares holding percentage for the existing investors. can you please explained the notion behinf the calculation of the warrant dilusion
Thanks a lot,
Orit