Warrants to purchase equity securities may be issued to purchasers of equity securities provided their issuance is necessary to obtain the equity financing, and provided further that the term of the warrant does not exceed 5 years, the number of equity securities issuable upon exercise of the warrants does not exceed the number of equity securities purchased together with the warrants and the exercise price is at least equal to the value of the equity securities calculated in the manner described in Section 260.140.50 of these rules at the date the warrant is issued.

Note: Authority cited: Section 25610, Corporations Code. Reference: Section 25140, Corporations Code.

History

1. Renumbering and amendment of former Section 260.140.44 to Section 260.140.45, and renumbering and amendment of former Section 260.140.43 to Section 260.140.44 filed 5-3-83; effective thirtieth day thereafter (Register 83, No. 19).