CG55458 - 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 拢200,000 for the grant of the option and 拢10 million for the issue of the shares. It would be treated as though it had issued the shares for consideration of 拢10.2 million.