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by Undo Capital
February 12, 2026
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What Is Warrants?

Warrants are financial instruments that give the holder the right, but not the obligation, to buy company shares at a fixed price before a set expiry date.

Warrants Meaning

The warrants meaning centres on providing investors or strategic partners with future upside tied to the company’s performance. To define warrants in practice, they operate similarly to share options but are often issued to investors as part of a funding round, to lenders as incentives, or to advisors as compensation. Warrants specify an exercise price, vesting or performance conditions, and an expiration date. A clear warrants definition matters because their exercise can create dilution, impact cap table planning and influence investor negotiations. Warrants stand for flexible, performance-linked rights that offer potential equity participation without immediate share issuance.

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Disclosure Notice: This communication is issued by Undo Capital Limited (“Undo Capital”) and is provided strictly for informational purposes only. It contains general information and should not be relied upon as accounting, business, financial, investment, legal, tax, or other professional advice. Undo Capital is not regulated by the Financial Conduct Authority (FCA) and does not provide investment, financial, or tax advice. Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. Nothing in this communication constitutes, or should be construed as, a recommendation, offer, or solicitation to purchase or sell any security or financial instrument.
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Disclaimer: Our services are designed to assist startups and businesses with company formation, legal agreements, and funding-related documentation. We do not provide investment advice, financial advice, or tax advice, nor are we regulated by the Financial Conduct Authority (FCA). Participating in startups and early-stage enterprises carries inherent risks, including limited liquidity, absence of dividends, potential loss of investment, and dilution. Any decisions regarding investments should be made independently by the investor as part of a well-diversified portfolio.