Document background
The Warrant Subscription Agreement is a crucial document in UAE corporate finance transactions, particularly used in growth-stage financing and strategic investments. This agreement type is commonly employed when companies wish to provide investors with the right to acquire shares at a later date, often as part of a larger financing package. The document must comply with UAE Federal Law No. 32 of 2021 (Commercial Companies Law) and relevant securities regulations, while potentially also addressing free zone requirements where applicable. The agreement typically includes detailed provisions on warrant terms, exercise procedures, anti-dilution protections, and regulatory compliance requirements. When drafting a Warrant Subscription Agreement in the UAE, special attention must be paid to local ownership restrictions, regulatory approvals, and Shariah compliance considerations if relevant.
