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Disclosure documents

Offering Circulars/Product Disclosure Statements

Each time a warrant issuer issues a new warrant the terms and conditions of the warrant must be set out in a disclosure document. The ASX Market Rules and the Corporations Act specify the information and terms that must be included in this document.

Disclosure documents are very important as they contain information to help you assess the benefits, risks, features (e.g. 'barriers' and 'caps'), rights and obligations associated with a warrant, and the issuer's capacity to fulfil its obligations.

In the disclosure document you can expect to find information on:

  • the rights and obligations of both issuer and holder
  • the underlying instrument
  • the warrant's pricing, fees and charges
  • what happens to the warrant in the case of an extraordinary event, such as a takeover 
  • how to subscribe for the warrant in the primary market
  • the reporting and documentation you can expect from the issuer
  • exercise procedures
  • what happens when the warrant expires
  • any other information an investor would reasonably require in making an informed decision.

A disclosure document may contain details of more than one warrant series. An issuer will often produce one document for a group of warrants it is issuing at the one time. 

In addition, there may be situations where a change needs to be made to a disclosure document (the circumstances in which an issuer can make changes and the nature of such changes are restricted). Where such a change is necessary the issuer will produce a supplementary disclosure document that updates the original disclosure document. 

The issuer may also release general announcements to the market that are also available to investors. An issuer will also make announcements identifying how a warrant will be adjusted following a corporate action (merger, return of capital, takeover etc.).

Where to find a disclosure document

Disclosure documents are available from:

  • the warrant issuer - refer to warrant issuers for a list of issuer contacts
  • your broker
  • the ASX website through the warrant price search function

In summary, it is important that you read the disclosure document before investing in a particular warrant series.  This can ensure that you understand the terms and conditions of the instrument you are buying and that it is appropriate for your financial situation and objectives.

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