“Warrant” is a Security that gives to the holder of the Warrant the right to buy certain Equity Securities at a certain price for a certain period of time.

One key difference between a Warrant and a Stock Option is that only individuals may receive Stock Options, whereas Warrants may be issued to both individuals and legal entities.

Warrants often are used in Debt Financing transactions in order to provide Investors with an additional Equity Kicker to boost their potential investment returns.