Difference with Convertible Debentures
Warrants are akin to convertible debentures to the extent that both give the holder the opinion rights in the ordinary shares but there are difference between the two. While the debentures and options inseparable, a warrant can be detached. Similarly, conversion option is tied debentures but warrants can be offered independently also. Warrant are typically exercisable for cash.
The important features of warrants are as follows.