Deemed Conversions Clause Samples
A Deemed Conversions clause defines circumstances under which certain securities, such as convertible notes or preferred shares, are automatically converted into another class of securities, typically common stock, without the need for explicit action by the holder. This clause often applies upon the occurrence of specific events, such as a qualified financing round, merger, or acquisition, and may specify conversion ratios or trigger thresholds. Its core practical function is to ensure a smooth and predictable transition of rights and interests in the company, preventing delays or disputes that could arise if holders needed to individually consent to conversion.
Deemed Conversions. Any repayment of the Monthly Amount in shares of Common Stock pursuant to the terms hereof shall constitute and be deemed a conversion of such portion of the applicable principal amount of this Note for all purposes under this Note and the Purchase Agreement (except as otherwise provided herein).
Deemed Conversions. Any repayment of the Monthly Amount in shares of Common Stock pursuant to the terms hereof shall constitute and be deemed a conversion of such portion of the applicable Principal Amount of this Debenture for all purposes under this Debenture and the other Transaction Documents (except that such conversion shall be at the Market Price and except as otherwise provided herein).
Deemed Conversions. Any repayment of the Tranche A Interest or Quarterly Amount in shares of Common Stock pursuant to the terms hereof shall constitute and be deemed a conversion of such portion of the Principal Amount of Tranche A of this Note for all purposes under this Note and the other Agreements (except that such conversion shall be at the Market Price and except as otherwise provided herein).
Deemed Conversions. Any payment of the Interest Amount or Bi-Monthly Amount in shares of Common Stock pursuant to the terms hereof shall constitute and be deemed a conversion of such portion of the outstanding Principal Amount of this Note for all purposes under this Note and the other Agreements (except that such conversion shall be at the Interest Payment Rate or Bi-Monthly Payment Rate, as applicable, and except as otherwise provided herein).
Deemed Conversions. Any payment of the outstanding Principal Amount in shares of Common Stock pursuant to the terms hereof shall constitute and be deemed a conversion of such portion of the outstanding Principal Amount of this Note for all purposes under this Note and the Settlement Agreement (and constitute Conversion Shares hereunder).