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Definition of 'Warrant Coverage'
An agreement between a company and its shareholders whereby the company issues warrants equal to some percentage of the dollar amount of the shareholder's investment.
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Investopedia explains 'Warrant Coverage'
For example, if an investor purchases 1,000,000 shares of stock at a price of $5 per share (a $5,000,000 investment), and the company grants 20% warrant coverage, the company issues to the investor $1,000,000 in warrants or, in technical terms, warrants 200,000 additional shares at an exercise price of $5 per share.
This would not give the investor any additional downside protection as the underlying shares would be issued at the same price that is currently paid for the stock. However, the warrant coverage would give the investor additional upside in the event that the company goes public or is sold at a price above $5 per share.
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Search results for 'Warrant Coverage'
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http://www.investopedia.com/articles/pf/09/seven-ways-borrow-money.asp
... This bank lending comes with a high interest rate and probable future stock warrant
coverage requirements, which allows the lender to purchase shares in the ...
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http://www.investopedia.com/articles/analyst/122001.asp
... of the companies at this end of the food chain may not warrant any attention. ... by
the acquiring company, but not by Wall Street because of the lack of coverage. ...
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http://stocks.investopedia.com/stock-analysis/2010/Solar-Capitals-Stellar-Yield-SLRC-ARCC-AINV-MSC-PNNT0723.aspx
... When Citigroup initiated coverage in March, it suggested Solar was trading at a
discount ... doesn't appear they see any short-term catalysts to warrant a higher ...
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http://stocks.investopedia.com/stock-analysis/2008/Should_You_Endorse_A_Blank-Check_Company.aspx
... at $8 per unit, which consisted of one common share and a warrant to purchase an ...
initiated coverage of the stock, giving it a 'hold' recommendation for two key ...
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http://stocks.investopedia.com/stock-analysis/2012/Micro-Cap-Gems-WPCS-HCII-USCR0124.aspx
... US Concrete's smaller size may certainly warrant a discount, but its worth noting
that ... With no analyst coverage, micro caps can offer some of greatest price to ...
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http://stocks.investopedia.com/stock-analysis/2011/8-Great-ETFs-For-Income-And-Diversification-PFF-MBB-NLY-CMO-LQD-CSJ-VCSH0414.aspx
... balance sheets are in fairly good shape and interest coverage is looking ... own experience
and expertise and move among asset classes as circumstances warrant. ...
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http://www.investopedia.com/articles/stocks/10/impact-of-sell-side-research.asp
... When an analyst "initiates" coverage on a company, s/he usually assigns a rating
in the form of ... Conversely, weak growth prospects may warrant a "sell" rating. ...
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http://www.investopedia.com/articles/mutualfund/09/choose-top-mutual-fund-manager.asp
... The program curriculum includes in-depth coverage of topics such as insurance and ...
This would warrant further research to see how the manager achieved those ...
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http://stocks.investopedia.com/stock-analysis/moneyshow/ANewTrendforRareEarthStocks.aspx
... The significant upside potential does warrant several risk-controlled (5%-6%)
buying attempts in order to establish new long positions. ...
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