Warrants can be offered either with a dividend/right or as an offering that you would need to purchase. Usually warrants are only offered to shareholders of its underlying share. The underlying share is the listed company that is offering the warrant.
UNDERLYING COMPANY EXAMPLE:
For example if Alliance Global Group, Inc. (AGI) is offering a warrant called AGI Warrant (AGIW). Then the underlying share is AGI. This warrant is only offered to shareholders of AGI of a certain date.
SUBSCRIPTION:
For AGIW this is a warrant offered at Php0.50 per warrant. This would mean that you would need to declare your intention of buying it and paying for it before you can get the warrant.
CAN YOU BUY MORE THAN YOUR ENTITLEMENT:
You also have an option to ask for more than your entitlement. You would just need to indicate in the AGIW offering banner than you wish to buy more. For example: If you are entitled to buy 100 warrants but you wish to buy 50 warrants more then please indicate in the offering banner the total number of shares you want to buy = which is 150 warrants.
PAYMENT PROCESS:
Please make sure that you cash balance in your COL account is sufficient for the total number of warrants you wish to buy before the deadline. We will then debit the amount on the deadline date.
WHAT HAPPENS WHEN YOU HAVE INSUFFICIENT FUNDS:
COL process your entitlement separate from the extra warrants you want to buy. We will process first your entitlement. If your funds are not sufficient then you will not be able to buy your entitlement. We then process your requested extra warrants afterwards. If your funds are still not sufficient then you will not be able to buy the extra warrants. But if your funds are sufficient for the extra warrants, then we can process that as a scaled-down amount of your entitlement.
For example:
Cash Balance: Php 30.00
Warrant price is: Php 0.50/warrant
Entitlement: 100 warrants
Total amount needed: Php 50.00
Extra warrants you want to buy: 50 warrants
Total amount needed: Php 25.00
Entitlement process: Insufficient cash amount
Extra warrant process: Cash is sufficient
Conclusion: You were able to purchase 50 warrants