1) Issuing warrants can sometimes signal that a company is desperate for capital or unable to raise funds through traditional methods like issuing equity, bonds, or taking out a loan. This may create the impression that the company is financially unstable.
2) Unlike structured warrants, when a company warrant is exercised, new shares are created, which results in dilution of existing shares and can negatively impact the share price.
3) Like structured warrants, company warrants also experience time decay, though it tends to be slower.
4) Company warrants do not entitle investors to dividends, unlike owning shares in the company.
Since you mentioned you enjoy attending annual meetings, I assume you’re a value investor. I’m not sure if company warrants would be suitable for a value investor, as they are generally considered a short-term speculative product.
