Quoted options to subscribe for shares: position of company if warrants are exercised
If some or all of the quoted options to subscribe for shares issued by a company are exercised TCGA92/S144 (2) treats the grant of the option and the issue of the shares as a single transaction. Any liability on the grant of the option is adjusted accordingly, see CG12317.
The issue of shares by a company is not treated as a disposal and therefore there is no further charge on the company if the option is exercised.
Suppose the company received £200,000 for the grant of the option and £10 million for the issue of the shares. It would be treated as though it had issued the shares for consideration of £10.2 million.