Common use of Automatic Conversion upon a Qualified Financing Clause in Contracts

Automatic Conversion upon a Qualified Financing. If a Qualified Financing occurs on or prior to the Maturity Date, then the outstanding principal amount of this Note, and all accrued and unpaid interest on this Note, shall automatically convert into fully paid and nonassessable shares of the capital stock issued and sold in such Qualified Financing at the Qualified Financing Conversion Price, with any fractional shares rounded down.

Appears in 6 contracts

Sources: Note Subscription Agreement (Tenon Medical, Inc.), Convertible Promissory Note (Tenon Medical, Inc.), Convertible Promissory Note (Tenon Medical, Inc.)

Automatic Conversion upon a Qualified Financing. If a Qualified Financing occurs on or prior to the Maturity Date, and the Investor has not elected to receive repayment of the Note pursuant to Section 1(c), then the outstanding principal amount of this Note, and all accrued and unpaid interest on this Note, shall automatically convert into fully paid and nonassessable shares of the capital stock issued and sold in such Qualified Financing at the Qualified Financing Conversion Price, with any fractional shares rounded down.

Appears in 1 contract

Sources: Note Subscription Agreement (Tenon Medical, Inc.)

Automatic Conversion upon a Qualified Financing. If a Qualified Financing occurs on or prior to the Maturity DateDate or an earlier conversion of this Note in accordance with the terms hereof, then the entire outstanding principal amount of this Note, Note and all accrued and unpaid interest on this Note, Note shall automatically convert into fully paid and nonassessable shares of the capital stock Qualified Shares issued and sold in such Qualified Financing at the Qualified Financing Conversion Price, with any fractional shares rounded down.

Appears in 1 contract

Sources: Convertible Note (Aeris Biotechnologies, Inc.)