Create a warrant
Use Diligent Equity to create a new warrant round and issue grants under the warrant. There are two stages when creating a warrant:
Create the warrant settings
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Go to the Securities section in the navigation sidebar and select Warrants.
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Select + New Warrant to start the new warrant wizard.
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Enter the warrant name and set the date of the warrant round.
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Select the warrant Type.
This is the security type used to exercise the plan grants.
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Select Actual. Unless you want to run a scenario in which case you would select Scenario.
Note
After you select Finish, you can go to Settings make any changes. Example: If the warrants have vesting schedule (other then fully vested), select Preferences on and select Show vesting schedule.
Create a profile for the participant and grant the warrant
After the warrant round has been created, you will need to issue warrants to the holders.
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Go to the Securities section in the navigation sidebar and select Warrants.
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Select the warrant round you want to issue.
The warrant view opens on the main screen.
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Select the Add new grant button to start the Add new holder wizard.
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Enter the name of the Holder.
If a shareholder record already exists for the person, select their name from the drop down menu.
If you need to add a new holder select Yes in the Create new Holder.
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Select Next and enter the warrant grant details.
Enter the number of warrants granted and make sure the Compliance checks passed checkbox is ticked and green.
For more information, on Compliance checks passed go to Option plan compliance check
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Select Next and enter the grant approval details.
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Check the Approved by the board checkbox.
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Enter the Grant date.
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Enter the warrant Exercise price.
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Enter the warrant Expiration date. A default date is automatically entered based on the expiration period set up under the Preferences link.
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Grant notice signed: Check this box when the grant notice is signed, and enter the date of signature in the Sign date field.
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Select Next and Finish if you do not want to upload any documents associated with this grant.
The warrant is added to the warrant round
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Select Close to exit out of the Warrant details. Select Save Record at the top of your screen to save any changes made to the cap table.
Note
You can skip adding the Personal Information at this stage and add later via the Holders tab.
Select the warrant to view the Vesting Summary and validate the Start Vesting Date and Vesting Schedule.
Note
By default, Diligent Equity will set the Start Vesting Date to the same day you created the warrant and the Vesting Schedule to standard. You may need to change these details for your warrants.
