Warrant issuance requires disclosed exercise pricing, upfront consideration and forfeiture if warrants remain unexercised.

Issuers may attach one or more warrants to a specified security in an initial public offer subject to an eighteen month tenure limit; the exercise price or its formula must be determined upfront and disclosed, and at least twenty-five percent of the consideration based on the exercise price (or on the cap price where a formula is used) must be received upfront; consideration for warrants not exercised within three months of payment shall be forfeited by the issuer.

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