The warrant holder is protected from changes in the ordinary share capital such as rights issues and scrip issues. If such an event occurs while the warrant is in existence the exercise price and the number of shares that can be subscribed for are adjusted. Who makes the above adjustments? Unless these adjustments are favorable to the holder, how is it that it says the holder is protected??
I think company issuing warraants would make the required adjutments to 'protect' the value of warrants. I think here 'protected' means that warrant holder would be immune to any changes in structure of share capital whether favourable or unfavourable.
