Open-Cap-Table-Coalition
[Enhancement]: Add Tutorial for Warrant Issuance and Exercise
Description of Enhancement :
Building on our existing tutorials, issue warrants for common and preferred stock. Clearly explain how the conversion rights and conversion mechanism concepts work and show an exercise event.
Why is this Needed?
Our conversion system is very powerful in how it lets you compose conversion triggers and calculation types into an instrument, but it's also fairly complex and seeing an example would help people grasp it faster.
Anything else we need to know?
Nope
@arthur-clara, saw your e-mail. We can handle the warrant exercise scenario you described, but your e-mail did make me realize our documentation on conversions and exercises is woefully inadequate. Will connect with you separately to go over how this works.
@JSv4 Thanks for that. I think I see how to do the scenario using a Convertible Conversion Right, but the issue is that even in this situation the Exercise Price is a required field and that value would not be known until the priced equity round, unless I am missing something.
Sorry, been a busy week, @arthur-clara. I will code a couple examples of how I think it would work. I'm pretty sure it can be supported, but I haven't taken a deep dive in a while. I'll write up some documentation while I do it.
https://docs.google.com/document/d/1XIVcyPAKxegWPG7Cd1ZxSQ2nmNaKsAiQTHHOH1ayLlE/edit#
Notes:
- Tutorial is complete, will review with @JSv4 and then prepare it for merge. Stuck with a basic fixed conversion of shares for this scenario, we can expand on it
TODO:
- run the code through the validator
- Update the markdown tutorial file