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A Warrant Agreement gives investors the right to buy shares in an Austrian company at a set price within a specific timeframe. These contracts play a key role in startup funding and corporate finance, helping businesses attract capital while giving investors potential upside if the company grows.

Under Austrian corporate law, these agreements must specify the exact number of shares, purchase price, and exercise period. Companies often use warrants alongside other financing tools like convertible bonds. The agreement protects both parties by clearly outlining rights, conditions, and procedures for exercising the warrants in line with Austria's Stock Corporation Act (Aktiengesetz).

Use a Warrant Agreement when raising capital without immediately diluting your company's shares. This tool works especially well for Austrian startups seeking early-stage funding, as it lets investors buy shares later at today's prices. It's also valuable when negotiating with venture capitalists or angel investors who want potential upside in your company's growth.

The agreement becomes particularly useful during bridge financing rounds or when combining with convertible notes. Many Austrian tech companies use warrants to attract strategic investors while preserving cash flow. It helps balance immediate funding needs with long-term ownership structure, all while complying with Austrian securities regulations.

• Basic Stock Warrants: Standard agreements giving rights to purchase common shares at a fixed price, commonly used by Austrian startups for seed funding
• Convertible Bond Warrants: Attached to bonds, allowing conversion to equity under specific conditions, popular in corporate restructuring
• Employee Stock Warrants: Modified agreements for staff incentive programs, following Austrian labor law requirements
• Anti-dilution Warrants: Protecting early investors from share value dilution during future funding rounds
• Performance-linked Warrants: Exercise rights tied to company milestones or financial targets, common in venture capital deals

• Company Directors: Authorize and sign Warrant Agreements on behalf of the issuing company, ensuring compliance with Austrian corporate law
• Investors: Receive warrant rights to purchase shares, typically venture capitalists, angel investors, or strategic partners
• Corporate Lawyers: Draft and review agreements to ensure they meet Austrian securities regulations and protect client interests
• Financial Advisors: Structure warrant terms and pricing, often working alongside investment banks for larger deals
• Company Secretaries: Maintain warrant records, track exercise periods, and handle administrative requirements under Austrian law

• Company Details: Gather current share structure, valuation, and registration details from Austrian commercial register
• Warrant Terms: Define exercise price, duration, and number of shares covered under the warrant
• Investor Information: Collect full legal names, addresses, and tax identification numbers of all warrant holders
• Corporate Approvals: Secure board resolution and shareholder consent as required by Austrian law
• Financial Statements: Prepare recent company valuations and financial projections
• Document Generation: Use our platform to create a customized, legally-compliant Warrant Agreement that includes all required elements

• Parties & Definitions: Full legal names, addresses, and roles of issuing company and warrant holders
• Warrant Terms: Exercise price, duration, number of shares, and any conditions for exercise
• Share Details: Class, voting rights, and any restrictions on transfer under Austrian law
• Exercise Procedure: Step-by-step process for converting warrants to shares
• Anti-dilution Protection: Adjustments for corporate actions affecting share value
• Governing Law: Explicit reference to Austrian jurisdiction and applicable securities regulations
• Transfer Rights: Rules for assigning or selling warrant rights to third parties

While Warrant Agreements and Call Option Agreements both involve the right to purchase shares, they serve different purposes in Austrian corporate finance. Understanding these differences helps choose the right instrument for your situation.

• Duration and Purpose: Warrants typically have longer terms (often years) and are used for fundraising, while call options usually have shorter timeframes and are used for trading or strategic investments
• Legal Structure: Warrants create new shares upon exercise, diluting existing shareholders, while call options transfer existing shares between parties
• Regulatory Framework: Warrants fall under Austrian securities law and require specific corporate approvals, while options face fewer regulatory hurdles
• Trading Flexibility: Call options are more easily traded on exchanges, while warrants often have transfer restrictions and are typically part of private financing deals