Effect of Exercise of the Warrant Clause Samples

The "Effect of Exercise of the Warrant" clause defines what happens when a warrant holder chooses to exercise their right to purchase shares or securities under the warrant agreement. Typically, this clause outlines the process for issuing new shares to the holder, the adjustment of ownership records, and any changes to the company’s capital structure resulting from the exercise. Its core practical function is to ensure both parties understand the immediate legal and financial consequences of exercising the warrant, thereby providing clarity and preventing disputes over the resulting rights and obligations.
Effect of Exercise of the Warrant. Upon surrender and payment as aforesaid the Common Shares so subscribed for shall be issued as fully paid and non-assessable Common Shares and the holder shall become the holder of record of such Common Shares on the date of such surrender and payment. Upon the exercise of all or any of the Warrants in the manner described above, the person or persons in whose name or names the Common Shares issuable upon exercise of the Warrants are to be issued shall be deemed for all purposes to be the holder or holders of record of such Common Shares on the date of such surrender and payment, within three (3) business days after surrender of the Warrant Certificate and payment, the Company shall forthwith cause the issuance and delivery to the person or persons a certificate for the Common Shares purchased as aforesaid at the address or addresses specified in the Exercise Form.
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Effect of Exercise of the Warrant. (a) Upon surrender and payment as aforesaid, the Common Shares so subscribed for shall be issued as fully paid and non-assessable shares of the Corporation and the holder shall become the holder of record of such Common Shares on the date of such surrender and payment. (b) Within five business days after surrender and payment as aforesaid, the Corporation shall forthwith cause the issuance to the holder a certificate for the Common Shares purchased as aforesaid.
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Effect of Exercise of the Warrant. (a) Upon surrender and payment as aforesaid the Common Shares so subscribed for shall be issued as fully paid and non-assessable shares of the Corporation, free from all liens, charges and encumbrances and the holder shall become the holder of record of such Common Shares on the date of such surrender and payment. (b) Within three (3) business days after surrender and payment as aforesaid, the Corporation shall forthwith cause the issuance of and make available for pick-up or, at the request of the holder, mail to the holder, a certificate for the Common Shares purchased as aforesaid. (c) Notwithstanding anything herein contained, including any adjustment provided for in Article 4, the Corporation shall not be required, upon the exercise of any Warrants, to issue fractions of Common Shares or to distribute certificates which evidence fractional Common Shares. In lieu of fractional Common Shares, there shall be paid to the holder by the Corporation upon surrender of Warrant Certificate(s) for exercise of Warrants pursuant to Section 3.1 within ten
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Effect of Exercise of the Warrant. (a) Upon surrender and payment as aforesaid the LP Units so subscribed for shall be issued as fully paid and non-assessable units, free from all liens, charges and encumbrances and the holder shall become the holder of record of such LP Units on the date of such surrender and payment; (b) Within five business days after surrender and payment as aforesaid, the Partnership shall forthwith cause the issuance of and make available for pick-up or, at the request of the holder, mail to the holder, a certificate for the LP Units purchased as aforesaid; and (c) Notwithstanding anything herein contained including any adjustment provided for in Article 4, the Partnership shall not be required, upon the exercise of any Warrants, to issue fractions of LP Units or to distribute certificates which evidence fractional LP Units. In lieu of fractional LP Units, there shall be paid to the holder by the Partnership upon surrender of Warrant Certificate(s) for exercise of Warrants pursuant to Section 3.1 within ten (10) business days after the exercise date, an amount in lawful money of Canada equal to the then Current Market Value of such fractional interest, provided that the Partnership shall not be required to make any payment, calculated as aforesaid, that is less than $5.00.
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Related to Effect of Exercise of the Warrant

  • Effect of Exercise of Warrants (1) Upon compliance by the Warrantholder with the provisions of Section 3.1, the Warrant Shares subscribed for shall be deemed to have been issued and the person to whom such Warrant Shares are to be issued shall be deemed to have become the holder of record of such Warrant Shares on the Exercise Date unless the transfer registers of the Company for the Common Shares shall be closed on such date, in which case the Warrant Shares subscribed for shall be deemed to have been issued and such person shall be deemed to have become the holder of record of such Warrant Shares on the date on which such transfer registers are reopened. (2) The Warrant Agent shall as soon as practicable account to the Company with respect to Warrants exercised, and shall as soon as practicable forward to the Company (or into an account or accounts of the Company with the bank or trust company designated by the Company for that purpose), all monies received by the Warrant Agent on the subscription of Warrant Shares through the exercise of Warrants. All such monies and any securities or other instruments, from time to time received by the Warrant Agent, shall be received in trust for the Warrantholders and the Company as their interests may appear and shall be segregated and kept apart by the Warrant Agent. (3) Within five Business Days following the due exercise of a Warrant pursuant to Section 3.1, the Company shall cause the Transfer Agent to issue and the Warrant Agent to deliver, within such five Business Day period, to CDS through the Book-Entry Only System the Warrant Shares to which the exercising Warrantholder is entitled pursuant to the exercise or mail to the person in whose name the Warrant Shares so subscribed for are to be issued, as specified in the exercise form completed on the Warrant Certificate, at the address specified in such exercise form, a certificate or certificates for the Warrant Shares to which the Warrantholder is entitled or, if so specified in writing by the holder, cause to be delivered to such person or persons at the office of the Warrant Agent where the Warrant Certificate was surrendered, a certificate or certificates for the appropriate number of Warrant Shares subscribed for, or any other appropriate evidence of the issuance of Warrant Shares to such person or persons in respect of Warrant Shares issued under the Book-Entry Only System and, if applicable, shall cause the Warrant Agent to mail a Warrant Certificate representing any Warrants not then exercised.