[Hidden-tech] Warrant for Common Stock

[Anthony Vlamis]

i don't have a lawyer recommendation but these documents are usually pretty standard.  They allow you to purchase a share of common stock at a certain price for a stated period of time--in other words they have expiration dates which if passed render the warrant worthless--.  
If this is a public company -- traded on an exchange--you'll be able to establish a current market value and then compare the stock price to the warrant price and figure out how much it is worth in terms of present value.  if it is a private company then the warrant is pretty much valueless because the values set for the company stock are completely arbitrary.  So if you accept a warrant to say purchase a share of the company stock at $1.00 for a term to expire in 5 years (go for the longest term possible) and they say the stock is valued at $2.50 today that value can pretty much be decided by the executive management over a cup of coffee that day.  

Again, public companies are not a problem because a real market valuation has been established by a purchaser and seller.  All the rest is at best an opinion and at worst a wish.

if it's possible to trade the paper for a right to purchase a percentage interest in the business or earn it through  sweat equity (again, in a private company situation) that would probably work out much better for you in a success scenario.

this is MHO

Anthony Vlamis
Intellagent Communications Solutions
1775 Plank Road
Forestburgh,  New York 12777-6803
845-794-2930





  ----- Original Message ----- 
  From: Read Predmore, Ph.D. 
  To: Hidden-discuss at lists.hidden-tech.net 
  Sent: Friday, January 19, 2007 9:36 AM
  Subject: [Hidden-tech] Warrant for Common Stock


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  19 January 2007

   

  Happy New Year Everyone!

   

  I am starting a consulting project with a startup company and am considering a "Warrant for Common Stock" in lieu of part of my fee.  I would like recommendation for a lawyer to review the "Warrant" and feedback from others that have done this.

   

  Thanks,

   

   

  Read Predmore, Ph.D.

  ________________________________

   

  Predmore Associates

  413-549-8554

  www.PredmoreAssociates.com

  read at PredmoreAssociates.com

  ________________________________

   

   



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