Warrants rollover

Hi guys, 

In the source of funds of a transaction I spotted "rollover warrants".

A few questions came to mind:

1. Does that capture staff options/esop or do these warrants come purely from management? 

2. Is this a cashless exercise or do warrants holders actually transfer cash to the company which is then use as a source of funds? 

3. Does this trigger a tax event for the company in case of exercise? 

Is there a way to convert staff vested options into stock of the buyer so as to avoid an exodus after an acquisition? 

2 Comments
 

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