Kicker
A kicker is an extra return given to a lender or investor on top of the base return, such as warrants, a right to convert debt into shares, or a share of profits or sale proceeds. It is mainly a finance term. A kicker compensates the lender or investor for taking added risk.
How BC law treats it
There is no specific BC statute on kickers; they are governed by the financing agreement. Where a kicker involves shares, warrants or conversion rights, securities law under the Securities Act, RSBC 1996 c 418 and the company's articles under the Business Corporations Act, SBC 2002 c 57 (BCBCA) must be respected.
What it means for your business
Granting a kicker can dilute existing owners or share future upside with a lender.
Risks and common mistakes
Issuing warrants or conversion rights without board authority or a valid prospectus exemption can make the issuance defective.
For the full explanation, see our entry on Equity kicker.
General information about British Columbia and Canadian law, current to October 2026. It is not legal advice.
