The subscription warrant occurred in the Polish legal system in 2004 with the entry into force of the amendment to the Code of Commercial Companies. The existence of this legal structure is inextricably linked to the financing of joint-stock company or limited joint-stock partnerships using the increase of share capital of these companies, either as part of the target increase of share capital or conditional increase of share capital.
Subscription warrant is a security issued by a company that entitles the holder (otherwise: it guarantees the holder) to (1) submit a subscription for shares within the authorized capital or (2) subscribe for new shares due to conditional share capital increase. In other words, a subscription warrant is an irrevocable obligation of the issuer to issue a certain number of shares to the subscription warrant holder.