Issue and Manage Warrants

Track warrants alongside your cap table, issue them to investors, advisors, or other stakeholders, apply optional vesting, and manage the full lifecycle from issue to exercise or lapse.

Issue a warrant

Go to Cap Table and select the Warrants tab.
Click Add warrant.
Complete the warrant details:
- Warrant holder: Select an existing stakeholder or add a new one
- Number of warrants: How many warrants are being granted
- Share class: Which share class the warrant can be exercised into
- Exercise price: The price per share at which the warrant can be exercised
- Vesting (optional): Tick to apply a vesting schedule, configure cliff and periodic vesting as needed
- Expiration type:
  - Time-based: number of months until expiration from the issue date
  - At a date: a specific calendar date
  - None: no expiration
  - Auto-lapse options: Optionally send a notification 30 days before expiry, or set Cake to auto-lapse warrants at expiration
Review the offer in the preview panel.
Click Save draft to save.
Click Issue to finalize and optionally invite the investor to Cake and upload the signed agreement

Exercise a warrant

When a warrant holder exercises their warrants:

Go to Cap Table → Warrants and find the warrant.
Click Exercise.
Enter the exercise date and the number of warrants being exercised.
Optional: select the checkbox to automatically issue a Share Certificate.
Confirm, the warrants are converted to shares and the holder appears on the Shareholders tab.

Lapse a warrant

To record a warrant that has expired or been forfeited:

Go to Cap Table → Warrants and find the warrant.
Click Actions → Lapse.
Enter the lapse date and number of warrants lapsing.
Confirm.

If a warrant reaches the expiration date and the settings were to auto-lapse at the date of expiration, this will happen for you.

Duplicate a warrant

To reuse warrant terms for another holder, click Actions → Duplicate from the Warrants list. A new warrant is pre-populated with the same terms.

What happens next

Issued warrants appear in the Warrants tab and are visible in your fully diluted cap table. Warrant holders can view their holdings in My Cake. When warrants are exercised, shares are issued immediately and the cap table updates.