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Understanding warrants treatment
 

Understanding warrants treatment

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    Understanding warrants treatment Understanding warrants treatment Document Transcript

    • Shares PriceSeries A 1,000 $ 1.0Series A Warrants 1,000 $ 1.0Options 1,000 $ 0.2Common 1,000Dividend per share $ 0.5Scenario 1: Non Participating Series A. Dividend for Warrants would be declared from the day it becomes Ser $0 Before this break point, debt is repaid $0 After this break point, the Series A receives value $1,500 After this break point, the Common receive value $1,700 After this break point, the $0.20 options exercise (Common at $0.20) $3,300 After this break point, the Series A Warrants converts (Common at $1.0) $4,800 After this break point, the Series A converts (Common at $1.5)Break Point #1 Debt is repaidDebt Principal $0Debt Interest through OPM Term (a) 4.42% $0 Break Point #1 $0(a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.Break Point #2 After this break point, the Series A receives valueBreak Point #1 $0Plus: Series A Liquidation Preference $1,000Plus: Series A Liquidation Dividend $500 Break Point #2 $1,500Break Point #3 After this break point, the $0.20 options exercise (Common at $0.20)Shares Outstanding 2,000Strike Price $0.20Subtotal $400Less: Cash Proceeds from Option Exercise ($200)Plus Break Point # 2 $1,500 Break Point #3 $1,700Break Point #4 After this break point, the Series A Warrants converts (Common at $1.0)Shares Outstanding 3,000Strike Price $1.00Subtotal $3,000Less: Cash Proceeds from Option and Warrants Exercise ($1,200)
    • Plus Break Point #2 $1,500 Break Point #4 $3,300* Options available are included in this breakpoint.Break Point #5 After this break point, the Series A converts (Common at $1.5)Shares Outstanding 4,000Strike Price $1.50Subtotal $6,000Less: Cash Proceeds from Option and Warrants Exercise ($1,200)Plus Break Point # 1 $0 Break Point #5 $4,800
    • m the day it becomes Series A. Scenario 2: Non Participating Series A. Divi $0 $0 $1,000e (Common at $0.20) $2,000nverts (Common at $1.0) $2,200 mmon at $1.5) $4,800 Break Point #1 Debt is repaid Debt Principal Debt Interest through OPM Term (a) (a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q Break Point #2 After this break point, the Series A receives interi Break Point #1 Plus: Series A Interim LP Break Point #3 After this break point, the Series A receive remain Break Point #1 Plus: Series A remaining LP Subtotal Plus: Series A Warrants remaining Value Break Point #4 After this break point, the $0.20 options exercise Shares Outstanding Strike Price Subtotal Less: Cash Proceeds from Option and Warrants Exercise
    • Plus Break Point #3* Options available are included in this breakpoint.Break Point #5 After this break point, the Series A and Series A WShares OutstandingStrike PriceSubtotalLess: Cash Proceeds from Option and Warrants ExercisePlus Break Point # 1
    • io 2: Non Participating Series A. Dividend for Warrants would be declared from the original issue date of Series A. Before this break point, debt is repaid After this break point, the Series A receives interim LP and Series A Warrants Exercise After this break point, the Series A receive remaining value After this break point, the Common receives value After this break point, the $0.20 options exercise (Common at $0.20) After this break point, the Series A and Series A Warrants converts (Common at $1.5) $0 4.42% $0 Break Point #1 $0licon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.is break point, the Series A receives interim LP and Series A Warrants Exercise $0 $1,000 $0 Break Point #2 $1,000is break point, the Series A receive remaining value $1,000 1000 1000 $500 .5*2000 1000 2000 $1,500 2000 -1000 $500 2000 $0 Break Point #3 $2,000is break point, the $0.20 options exercise (Common at $0.20) 2,000 $0.20 $400n and Warrants Exercise ($200)
    • $2,000 Break Point #4 $2,200n this breakpoint.is break point, the Series A and Series A Warrants converts (Common at $1.5) 4,000 $1.50 $6,000n and Warrants Exercise ($1,200) $0 Break Point #5 $4,800
    • Shares PriceSeries A 1,000 $ 1.0Series A Warrants 1,000 $ 1.0Options 1,000 $ 0.2Common 1,000Dividend per share $ 0.5Scenario 1: Fully Participating Series A. Dividend for Warrants would be declared from the day it becomes Se $0 Before this break point, debt is repaid $0 After this break point, the Series A receives value and Warrants Exercise $1,500 After this break point, the Common and Series A receive value $2,100 After this break point, the $0.20 options exercise (Common at $0.20)Break Point #1 Debt is repaidDebt Principal $0Debt Interest through OPM Term (a) 4.42% $0 Break Point #1 $0(a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.Break Point #2 After this break point, the Series A receives value and Warrants ExerciseBreak Point #1 $0Plus: Series A Liquidation Preference $1,000Plus: Series A Liquidation Dividend $500 Break Point #2 $1,500Break Point #3 After this break point, the $0.20 options exercise (Common at $0.20)Shares Outstanding 4,000Strike Price $0.20Subtotal $800Less: Cash Proceeds from Option Exercise ($200)Plus Break Point # 2 $1,500 Break Point #3 $2,100
    • m the day it becomes Series A. Scenario 2: Fully Participating Series A. Divi $0e and Warrants Exercise $0A receive value $1,000e (Common at $0.20) $2,000 $2,600 Break Point #1 Debt is repaid Debt Principal Debt Interest through OPM Term (a) (a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q Break Point #2 After this break point, the Series A receives interi Break Point #1 Plus: Series A Interim LP Break Point #3 After this break point, the Series A receives rema Break Point #1 Plus: Series A remaining LP (Dividend amount) Plus: Series A Liquidation Dividend Plus: Series A Warrants remaining Value (Dividend Amount) Break Point #4 After this break point, the Common and Series A Shares Outstanding Strike Price Subtotal Less: Cash Proceeds from Option and Warrants Exercise
    • Plus Break Point #3
    • io 2: Fully Participating Series A. Dividend for Warrants would be declared from the original issue date of Series A. Before this break point, debt is repaid After this break point, the Series A receives interim LP and Series A Warrants Exercise After this break point, the Series A receives remaining value After this break point, the Common and Series A receive value After this break point, the $0.20 options exercise (Common at $0.20) $0 4.42% $0 Break Point #1 $0licon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.is break point, the Series A receives interim LP and Series A Warrants Exercise $0 $1,000 $0 Break Point #2 $1,000is break point, the Series A receives remaining value $1,000dend amount) $500 $1,500g Value (Dividend Amount) $500 $0 Break Point #3 $2,000is break point, the Common and Series A receive value 4,000 $0.20 $800n and Warrants Exercise ($200)
    • $2,000Break Point #4 $2,600
    • Shares PriceSeries A 1,000 $ 1.0 Series A Cap of 3xSeries A Warrants 1,000 $ 1.0 Series A reaches CapOptions 1,000 $ 0.2 Series A convertsCommon 1,000Dividend per share $ 0.5Scenario 1: Capped Participating Series A. Dividend for Warrants would be declared from the day it becomes $0 Before this break point, debt is repaid $0 After this break point, the Series A receives value and Warrants exercise $1,500 After this break point, the Common receive value $2,100 After this break point, the $0.20 options exercise (Common at $0.20) $9,300 After this break point, the Series A and Series A Warrants reaches cap (C $11,300 After this break point, the Series A Warrants converts (Common at $3.0) $12,800 After this break point, the Series A converts (Common at $3.5)Break Point #1 Debt is repaidDebt Principal $0Debt Interest through OPM Term (a) 4.42% $0 Break Point #1 $0(a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.Break Point #2 After this break point, the Series A receives value and Warrants exerciseBreak Point #1 $0Plus: Series A Liquidation Preference $1,000Plus: Series A Liquidation Dividend $500 Break Point #2 $1,500Break Point #3 After this break point, the $0.20 options exercise (Common at $0.20)Shares Outstanding 4,000Strike Price $0.20Subtotal $800Less: Cash Proceeds from Option Exercise ($200)Plus Break Point # 2 $1,500 Break Point #3 $2,100Break Point #4 After this break point, the Series A and Series A Warrants reaches cap (Common at $2.0)Shares Outstanding 4,000Strike Price $2.00Subtotal $8,000Less: Cash Proceeds from Option Exercise ($200)
    • Plus Break Point #2 $1,500 Break Point #4 $9,300Break Point #5 After this break point, the Series A Warrants converts (Common at $3.0)Shares Outstanding 3,000Strike Price $3.00Subtotal $9,000Less: Cash Proceeds from Option and Warrants Exercise ($1,200)Plus Break Point # 1 $0Plus Remaining Max Par of Series A $3,500 Break Point #5 $11,300Break Point #6 After this break point, the Series A converts (Common at $3.5)Shares Outstanding 4,000Strike Price $3.50Subtotal $14,000Less: Cash Proceeds from Option and Warrants Exercise ($1,200)Plus Break Point # 1 $0 Break Point #5 $12,800
    • $ 3.0 $ 2.0 $ 3.5from the day it becomes Series A. Scenario 2: Capped Participating Series A. D $0e and Warrants exercise $0 $1,000e (Common at $0.20) $2,000 Warrants reaches cap (Common at $2.0) $2,600nverts (Common at $3.0) $9,800 mmon at $3.5) $12,800 Break Point #1 Debt is repaid Debt Principal Debt Interest through OPM Term (a) (a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q Break Point #2 After this break point, the Series A receives interi Break Point #1 Plus: Series A Interim LP Plus: Series A Liquidation Dividend Break Point #3 After this break point, the Series A receives rema Break Point #1 Plus: Series A remaining LP Plus: Series A Liquidation Dividend Plus: Series A Warrants remaining Valueap (Common at $2.0) Break Point #4 After this break point, the $0.20 options exercise Shares Outstanding Strike Price Subtotal Less: Cash Proceeds from Option and Warrants Exercise
    • Plus Break Point #3Break Point #5 After this break point, the Series A and Series A WShares OutstandingStrike PriceSubtotalLess: Cash Proceeds from Option and Warrants ExercisePlus Break Point # 1Break Point #6 After this break point, the Series A and Series A WShares OutstandingStrike PriceSubtotalLess: Cash Proceeds from Option and Warrants ExercisePlus Break Point # 1
    • io 2: Capped Participating Series A. Dividend for Warrants would be declared from the original issue date of Series A. Before this break point, debt is repaid After this break point, the Series A receives interim LP and Series A Warrants Exercise After this break point, the Series A receives remaining value After this break point, the Common and Series A receives value After this break point, the $0.20 options exercise (Common at $0.20) After this break point, the Series A and Series A Warrants reaches cap (Common at $2.0) After this break point, the Series A and Series A Warrants converts (Common at $3.5) $0 4.42% $0 Break Point #1 $0licon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.is break point, the Series A receives interim LP and Series A Warrants Exercise $0 $1,000 $0 Break Point #2 $1,000is break point, the Series A receives remaining value $1,000 $500 $1,500 $500 $0 Break Point #3 $2,000is break point, the $0.20 options exercise (Common at $0.20) 4,000 $0.20 $800n and Warrants Exercise ($200)
    • $2,000 Break Point #4 $2,600is break point, the Series A and Series A Warrants reaches cap (Common at $2.0) 4,000 $2.00 $8,000n and Warrants Exercise ($200) $2,000 Break Point #5 $9,800is break point, the Series A and Series A Warrants converts (Common at $3.5) 4,000 $3.50 $14,000n and Warrants Exercise ($1,200) $0 Break Point #5 $12,800
    • of Series A.
    • Shares PriceSeries A 1,000 $ 1.0 Series A MPP (including Dividend)Series A Warrants 1,000 $ 1.0 Series A reaches CapOptions 1,000 $ 0.2 Series A convertsCommon 1,000 Series A Warrants reaches cap atDividend per share $ 0.5Scenario 1: Capped Participating Series A. Dividend for Warrants would be declared from the day it becomes $0 Before this break point, debt is repaid $0 After this break point, the Series A receives value $1,500 After this break point, the Common receives value $2,100 After this break point, the $0.20 options exercise (Common at $0.20) $7,300 After this break point, the Series A reaches cap (Common at $1.5) $8,800 After this break point, the Series A Warrants reaches its cap (Common at $10,800 After this break point, the Series A and Series A Warrants converts (ComBreak Point #1 Debt is repaidDebt Principal $0Debt Interest through OPM Term (a) 4.42% $0 Break Point #1 $0(a) The after-tax cost of debt is Silicon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.Break Point #2 After this break point, the Series A receives valueBreak Point #1 $0Plus: Series A Liquidation Preference $1,000Plus: Series A Liquidation Dividend $500 Break Point #2 $1,500Break Point #3 After this break point, the $0.20 options exercise (Common at $0.20)Shares Outstanding 4,000Strike Price $0.20Subtotal $800Less: Cash Proceeds from Option Exercise ($200)Plus Break Point # 2 $1,500 Break Point #3 $2,100Break Point #4 After this break point, the Series A reaches cap (Common at $1.5)Shares Outstanding 4,000Strike Price $1.50Subtotal $6,000Less: Cash Proceeds from Option Exercise ($200)
    • Plus Break Point #2 $1,500 Break Point #4 $7,300Break Point #5 After this break point, the Series A Warrants reaches its cap (Common at $2.0)Shares Outstanding 3,000Strike Price $2.00Subtotal $6,000Less: Cash Proceeds from Option and Warrants Exercise ($200)Plus Break Point # 1 $0Plus Remaining Max Par of Series A $3,000 Break Point #5 $8,800Break Point #6 After this break point, the Series A and Series A Warrants converts (Common at $3.0)Shares Outstanding 4,000Strike Price $3.00Subtotal $12,000Less: Cash Proceeds from Option and Warrants Exercise ($1,200)Plus Break Point # 1 $0 Break Point #5 $10,800
    • including Dividend) $ 3.0 $ 1.5 $ 3.0nts reaches cap at $ 2.0from the day it becomes Series A. Scenario 2: Capped Participating Series A $0 $0 $1,000e (Common at $0.20) $2,000 Common at $1.5) $2,600 ches its cap (Common at $2.0) $7,800 Warrants converts (Common at $3.0) $10,800 Break Point #1 Debt is repaid Debt Principal Debt Interest through OPM Term (a) (a) The after-tax cost of debt is Silicon Valley Banks average loan yield as o Break Point #2 After this break point, the Series A receives int Break Point #1 Plus: Series A Interim LP Plus: Series A Liquidation Dividend Break Point #3 After this break point, the Series A receives rem Break Point #1 Plus: Series A remaining LP Plus: Series A Liquidation Dividend Plus: Series A Warrants remaining Value Break Point #4 After this break point, the $0.20 options exerci Shares Outstanding Strike Price Subtotal Less: Cash Proceeds from Option and Warrants Exercise
    • Plus Break Point #3 Break Point #5 After this break point, the Series A and Series Shares Outstanding Strike Price Subtotal Less: Cash Proceeds from Option and Warrants Exercise Plus Break Point # 1 Break Point #6 After this break point, the Series A and SeriesCommon at $3.0) Shares Outstanding Strike Price Subtotal Less: Cash Proceeds from Option and Warrants Exercise Plus Break Point # 1
    • io 2: Capped Participating Series A. Dividend for Warrants would be declared from the original issue date of Series A. Before this break point, debt is repaid After this break point, the Series A receives interim LP and Series A Warrants Exercise After this break point, the Series A receives remaining value After this break point, the Common and Series A receives value After this break point, the $0.20 options exercise (Common at $0.20) After this break point, the Series A and Series A Warrants reaches cap (Common at $1.5) After this break point, the Series A and Series A Warrants converts (Common at $3.0) $0 4.42% $0 Break Point #1 $0licon Valley Banks average loan yield as of Q2 2010. The tax rate utilized is 40%.is break point, the Series A receives interim LP and Series A Warrants Exercise $0 $1,000 $0 Break Point #2 $1,000is break point, the Series A receives remaining value $1,000 $500 $1,500 $500 $0 Break Point #3 $2,000is break point, the $0.20 options exercise (Common at $0.20) 4,000 $0.20 $800n and Warrants Exercise ($200)
    • $2,000 Break Point #4 $2,600is break point, the Series A and Series A Warrants reaches cap (Common at $1.5) 4,000 $1.50 $6,000n and Warrants Exercise ($200) $2,000 Break Point #5 $7,800is break point, the Series A and Series A Warrants converts (Common at $3.0) 4,000 $3.00 $12,000n and Warrants Exercise ($1,200) $0 Break Point #5 $10,800
    • of Series A.