How to issue warrants on Capdesk

This article will cover how to record warrants manually on Capdesk.

The first point of action is to ensure you have enabled the "Warrants Add-on" which can be found in the Settings and Add-ons tab (under Settings) on the left menu:
 Screenshot 2020-04-20 at 15.08.16

Once you are on the add-ons page, please tick the box which says "Warrants Addon" and then click save, you should see a new tab on the left menu under Equity Awards which says "Warrants". Screenshot 2020-04-20 at 15.14.14

Before you can issue warrants, you will need add the relevant warrant plan. Go to the "Plans" tab and then click on add plan: 
Screenshot 2020-04-20 at 15.24.13

This will redirect you to the following page where you will need to fill in the origins of the shares, the name of the plan and the share class (if the desired share class is not featured on the drop down, you can add a new share class by clicking the grey "Add" button to the right of the share class field).

When adding a plan, it is important to note that you may need to add an incentive pool first. The incentive pool gives you an overview of all your incentive equity awards that support authorised warrants. If you would like to add an incentive pool, you can read the following support article here.

Choose the origin of shares this plan is using:

1) Directly from Incentive Pool: if the shares has been authorised by the board to an equity pool in general

2) Authorised specifically for this plan (a portion of the pool): if the shares has been authorised by the board to this plan specifically

3) Outside Pool (non-incentive shares outside the pool): if no shares has been authorised, but will be upon either granting or exercising

4) Issued: if the shares are already issued to a shareholder who will be satisfying the awards on exercise.

Screenshot 2020-04-24 at 10.57.34

Once you have inputted the necessary details for the plan, please click save. It will then show on the plans tab, as seen below:
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After this, navigate to the "Grants" tab and then to the green "Issue Grant" button, from here you can click "Register Offline Issuance": 
Screenshot 2020-04-20 at 16.41.10

If you wish to execute a new grant issuance on Capdesk, you can choose to issue online. You will need to implement documentation and configure signatures manually on Capdesk. You can see the warrant grant signing support article here.

Registering an offline issuance means that the grant has already been signed outside of Capdesk. 

From this button you will be redirected to a page which allows you to select an existing stakeholder recorded on Capdesk or you can add a new warrantholder instead. 
Screenshot 2020-04-21 at 10.03.27
If you would like to add a new warrantholder, you will first have to select the type of warrantholder (a person, company or a trust), then you will be asked to fill in the following details for the new warrantholder: 
Screenshot 2020-04-21 at 10.17.02

After you have chosen whether to create a new warrantholder or choose an existing one, you will be asked to fill in the following grant details: 
Screenshot 2020-04-21 at 10.28.13

You will need to fill out:

  • Warrant plan - select the warrant plan you have just added
  • Grant date - date of when the warrants were granted (this is not the vesting start date)
  • Exercise price - exercise price per share
  • Warrants - number of warrants granted
  • Expires - expiration date of the grant (if applicable)

An example of these being filled out is shown below.

Screenshot 2020-04-21 at 10.48.07

For the vesting schedule, you will need to put in values for:

  • Vesting schedule - Dictates how the warrants will vest.
    - Automatic (Distribute Evenly, Round Up): Rounds first tranche then distributes evenly.
    - Automatic (Distribute Evenly, Round Down): Rounds down first tranche then distributes evenly.
    - Automatic (Round Up): Rounds up any fractional vesting each tranche and removes any difference in last tranche.
    - Automatic (Round Down): Rounds down any fractional vesting each tranche and adds any difference at the last tranche.
    - Immediate: Allows for all warrants to be vested upon reaching vesting start date.
    - Custom: Allows vesting at selected dates.
    Vesting Conditions: Set conditions which have to be met to allow warrants to be vested e.g. vests on exit (no data is required to be entered).
  • Vesting period start date - The date of when the warrant grant starts vesting (including the cliff).
  • Vesting on - When the tranches should be vested e.g. First of each month.
  • Vesting period - Total vesting period in months including cliff.
  • Vesting cliff (months) - No vesting takes part during the cliff, after the cliff, the first vesting tranche will include the entire cliff period.
  • Vesting cliff percentage - The percentage of the grant which is to be vested at the end of the cliff period.
  • Vesting interval - How often does it vest after the cliff / or vesting start date e.g. if warrant grant vests monthly, input 1.

An example of these values being filled out is shown below.

Screenshot 2020-04-21 at 10.55.03

If you have any documents, you wish to attach, we'd advise you upload now by clicking the "Notes and Documents" drop-down and upload the document there.

Once you've entered the relevant details and if you aren't live click the "Save Draft" button. If you are already live, you can select either "Save Draft" or "Publish and Notify Grant holder" button.

Once the warrant has been registered it will appear on the "Grant" tab as shown below.

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To view detailed information for any warrant click the "View" button on the "Warrants" page.

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Thanks for reading this support article, we hope it was helpful. If you need further assistance, you can reach out to us by submitting a support ticket here.