Conversion upon Maturity Date Clause Samples
The "Conversion upon Maturity Date" clause defines the process by which a financial instrument, such as a convertible note or loan, is automatically converted into equity or another form of security when it reaches its maturity date. Typically, this means that if the note has not been repaid or converted through another event (like a financing round) by the maturity date, the outstanding principal and any accrued interest are converted into shares of the company at a predetermined rate or formula. This clause ensures that investors receive equity in the company if repayment does not occur, thereby protecting their investment and providing a clear resolution at the end of the note's term.
Conversion upon Maturity Date. On the Maturity Date without any action on the part of the Holder, the outstanding principal and accrued and unpaid interest under the Notes will be converted into shares of Common Stock at a conversion price equal to the closing price of the Common Stock on the Maturity Date.
Conversion upon Maturity Date. In the event that the Purchase Amount shall not have been converted or repaid pursuant to the terms of this Safe prior to the Maturity Date, then on the Maturity Date the Company will automatically issue to the Investor such number of the Company’s then outstanding most senior shares equal to the quotient obtained by dividing the outstanding Purchase Amount by the Maturity Price.
Conversion upon Maturity Date. If the Loan has not been repaid prior to the lapse of twenty-four (24) months following the Effective Date (the “Maturity Date”), at the Maturity Date, the entire Loan (which for avoidance of doubt shall include the Interest) shall automatically be converted into such number of the most senior class of shares of the Company then outstanding, equal to the Loan divided by the lowest price per share actually paid to the Company in the most recent share purchase agreement prior to the Maturity Date, for such most senior class of shares of the Company then outstanding, rounded up to the nearest whole number. The closing of such conversion shall occur on the Maturity Date with no further action to be taken by either Party hereto.
Conversion upon Maturity Date. In the event this Note remains outstanding on the Maturity Date, the Holder may, at the Holder’s option, convert all but not less than all of the outstanding balance of the Note into Ordinary Shares at the lowest of: (i) the Fixed Conversion Price; (ii) 90% of the volume-weighted average closing price of the Ordinary Shares during the twenty (20) consecutive Trading Day period ending on the Trading Day immediately prior to the applicable Conversion Date; (iii) 90% of the volume-weighted average closing price of the Ordinary Shares during the one hundred and seventy five (175) consecutive Trading Day period ending on the Trading Day immediately prior to the applicable Conversion Date; (iv) 95% of the per share purchase price of Ordinary Shares offered in a subsequent private placement transaction of the Company consummated during the term of the Note (except the Exempt Issuance); and (v) the purchase price of ordinary shares offered in a subsequent underwritten public offering of the Company that takes place during the term of the Note; and (vi) volume-weighted average trade price of the Ordinary Shares on the Trading Day immediately prior to the applicable Conversion Date. Notwithstanding the forgoing, in no event shall such conversion price under this Section 3.4 be less than the Floor Price, subject to the adjustment pursuant to Section 6.1.
Conversion upon Maturity Date. If the Loan (and the accrued Interest thereon) has not been repaid or converted prior to the lapse of six (6) months following the Effective Date (the “Maturity Date”), at the Maturity Date, at the request of a Lender, made at Lender’s sole discretion, the entire Loan and the accrued Interest thereon shall be converted into such number of the most senior class of shares of the Company then outstanding, equal to the Loan and any Interest accrued thereon, divided by the lowest price per share actually paid to the Company since August 1, 2021, for such most senior class of shares of the Company then outstanding, discounted by the Discount, rounded up to the nearest whole number. The closing of such conversion shall occur within 14 days of the Maturity Date and subject to receiving a notice requesting the conversion as aforesaid.
Conversion upon Maturity Date. On the Maturity Date without any action on the part of the Holder, the outstanding principal and accrued and unpaid interest under the Notes will be converted into shares of New Round Stock based upon a ten percent (10%) discount to the lesser of (A) the VWAP average of the last 30 calendar days ending on the closing of the Qualified Financing (or, in the event of multiple closings, the lowest VWAP average of the last 30 calendar days ending on each closing of a Qualified Financing) in the event of a Maturity Date referred to in clause (b) of the definition thereof, or (B) the VWAP average of the last 30 calendar days before the Maturity Date in the event of a Maturity Date referred to in clause (a) of the definition thereof (the “Conversion Price”).