Definition
Warrant coverage is an agreement where investors are given the right to purchase additional shares at a certain price, typically included in venture debt deals to sweeten the terms for lenders.
Usage and Context
Warrant coverage lets investors buy more shares at a certain price, usually included in venture debt deals.
Frequently asked questions
What is the meaning of warrant coverage? Warrant coverage refers to the percentage of extra shares an investor can buy as part of a financing deal.

What is a warrant agreement? A warrant agreement is a contract that outlines the terms and conditions under which a warrant holder can purchase shares of stock.

What is warrant coverage on venture debt? Warrant coverage on venture debt is when lenders get warrants to buy company equity as part of the loan terms, often as extra compensation.
Related Software
Robinhood, Fidelity
Benefits
Warrant coverage allows extra shares to be purchased at a fixed price, enhancing investor options.
Conclusion
Warrant coverage allows investors to purchase additional shares at a predetermined price, enhancing investment potential.
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