RE:RE:RE:RE:RE:Warrants accelerated?Better to have the time and use if the money and the following is espcially true with in the money warrants. "
1. Treatment of options and warrants In nearly all cases, investors will require that a company's fully diluted capitalization include any and all options and warrants that are outstanding prior to the investment. The argument for such inclusion is that, although the holder of such options or warrants may never actually exercise such options or warrants (eg, if the holder ceases to perform services for the company and the options or warrants terminate), the company is likely to grant a similar number of options or warrants to the parties who would replace those former service providers.
Example: BigVC is going to invest $2 million into GiantCo based on an $8 million pre-money valuation. The term sheet dictates that the fully diluted capitalization include all outstanding stock plus granted options and warrants. GiantCo’s fully diluted capitalization is as follows:
| Stock | 6,000,000 shares |
| Options | 1,800,000 shares |
| Warrants | 200,000 shares |
| Total | 8,000,000 shares |
Here, the price per share that BigVC would pay for its stock would be: $8 million (pre-money valuation) / 8 million shares (fully diluted capitalization) = $1. Accordingly, BigVC's $2 million investment would buy it 2 million shares.