What is a warrant agreement?

A warrant agreement is a legal document to acquire shares under which a company (the grantor) grants a contractual right (but not an obligation) to a third party (the warrant holder) to purchase shares in that company. In the context of Augmentor, your company will be the grantor of 1% shares at nominal value and Digital Catapult the warrant holder.

A warrant is also only exercisable upon specific events (for example company liquidation, sale, asset sale, public listing and qualifying funding round) and within a specific exercise period (for example 5 years) and is, in many ways, similar to an option.

Digital Catapult
Augmentor is an immersive acceleration programme designed and delivered by Digital Catapult.